Owner: Don Cook National Instruments Supplier Scorecard .
2018 Supplier Scorecard CriteriaOwner: Don CookNational Instruments’ Supplier ScorecardAssessment CriteriaI. OVERVIEW .2II.QUALITY – 30 points total .2a.NCMR count .3b.DPPM .4c.DPPM scoring brackets.5d.SCAR, IQE, and CQE scoring .6III. SUPPLY ASSURANCE (3 part section) .7a.On-Time Delivery formula.7b.On-Time delivery scoring .8c.Lead Time formula .8d.Lead Time scoring by commodity .8e.Operational Effectiveness .9f.VDL scoring . 10IV. Business Alignment (3 part section) – 30 points total . 10a.Savings – 15% . 10V.CUSTOMER SERVICE/SUPPORT – 10 points total. 11a.Rating definition: NI Procurement Personnel . 11b.Rating Definition: NI Non-Procurement. 12c.Service/Support formula: . 12VI. Supplier Scoring Brackets . 12Page 1
2018 Supplier Scorecard CriteriaOwner: Don CookI. OVERVIEWThe National Instruments (NI) Supplier Scorecard provides a quantitative and consistentprocess to measure supplier and original manufacturer performance categories critical toour success, and drive toward continual improvement in all areas important to NI. Thisprocess is designed to improve incoming material quality, reduce lead times, help achieveuninterrupted supply, enhance pricing competitiveness (lowest total cost of ownership)and improve customer service.The Supplier Scorecard uses four main assessment criteria, which provide the best gaugeof product and service performance. The four criteria are Quality, Supply Assurance,Total Cost, and Customer Service and Support. These are assigned points (orpercentages) totaling 100 points (Quality 30, Supply Assurance 30, BusinessAlignment 30, Customer Service/Support 10.)The OEM Scorecard and Product Partner Scorecard measure Quality only and total 30points.Below is a description of each assessment criterion (II. Through V.):II. QUALITY – 30 points totalQuality is worth 30% of the total scorecard or 30 points total. The breakdown of these30 quality points depends upon the commodity. For electronic distributors and targetedtransactional electronic component manufacturers the DPPM is calculated based ontotal lots received and total NCMR count. For product partners, the 30 points issubdivided into three categories: NCMR count, Defective Parts Per Million (DPPM) andSCAR occurrence. For all other commodities, the 30 points is subdivided into twocategories: Defective Parts Per Million (DPPM) and SCAR occurrence. The pointbreakdown can be summarized as follows:Page 2
2018 Supplier Scorecard CriteriaOwner: Don CookSupplier ScorecardDPPMSCAR occurrenceTotalOEM ScorecardDPPMSCAR occurrenceTotalElectronic Distributors andTransactional201030All other commodities201030201030Product Partner ScorecardNCMR countDPPMSCAR occurrenceTotal5151030a. NCMR count(applicable only for Product Partners)NCMR stands for Nonconforming Material Report. Product Partners start out with agiven 5 points in Quality and lose points based on the number of NCMRs. For eachNCMR, a negative one (-1) point will be applied. This is typically a 5 point sectionand if a supplier has more than 5 NCMRs in one quarter, maximum 5 points can betaken from this category. See table below for example:NCMR Count0123456Etc.Points subtracted0 (supplier scores 5 in this category)-1 (supplier scores 4 in this category)-2 (supplier scores 3 in this category)-3 (supplier scores 2 in this category-4 (supplier scores 1 in this category)-5 (supplier scores 0 in this category)-5 (supplier scores 0 in this category)-5 (supplier scores 0 in this category)Note: NI may choose to contract with Electrical distributors to manufacturer productresell solutions or product integration services. NCMRs for these types of productPage 3
2018 Supplier Scorecard CriteriaOwner: Don Cookare removed from the NCMR count for a given scorecard distributor. The purposebeing that NI wants to track NCMR count as it applies to typical distribution typecomponents, not product integration services where the distributor has a large role inthe manufacturing of the product. However, the defects themselves are reflected ina given distributors DPPM score.b. DPPM(defective parts per million)The defect rate at the piece part level.The calculation is:quantity of parts rejectedX 1,000,000quantity of parts receivedRejects counted are identified within the reporting period, regardless of when theproduct was received, and compared with the quantity received within the sameperiod. Multiple rejections can be recorded against one part.For Electronic Distributors and Transactional suppliers the DPPM is calculated ona lot pass/fail basis.The calculation is:# of NCMRsX 1,000,000Quantity of Lots receivedNI has established individual or like commodity DPPM brackets. “Bracket”means a table which details out the commodity, the DPPM ranges and the givenpoints associated with a DPPM range. Refer to the next section for the specifics.Page 4
2018 Supplier Scorecard CriteriaOwner: Don Cookc. DPPM scoring brackets(commodity specific)Supplier Scorecard:Supplier Scorecard:OEM Scorecard : Crystal/Oscillator,Hardware DistributorsStandard IC, Interconnect, Relay, SolidState Storage, DIMM MemoryPPM Score0 - 400401 - 800801 - 12001201 - 1500 1500%0.04%0.08%0.12%0.15% 0.15%Points20121050Supplier Scorecard: Software, Print,DPPM Score 0 - 200201 – 400401 - 600601 – 750751 - 1000 1000%0.02%0.04%0.06%0.075%0.10% 0.1%Points2017151050Supplier Scorecard: PCBPackaging, LabelDPPM Score%PointsDPPM Score%Points 0 - 5000.05%200-10000.10%20501 - 10000.10%171001-25000.25%171001 - 15000.15%152501-50000.50%151501 - 25000.25%105001-75000.75%102501 - 50000.50%57501 - 100001.00%5 5000 .50%010001-150001.15%3 15000 1.15%0Supplier Scorecard: Cable, Metal, Plastic,Supplier Scorecard: ChassisOEMFlex PCBScorecard: Power SupplyOEM Scorecard: Hard Drive, RF SpecificDPPM Score%PointsDPPM Score%Points0 - 20000.20%200 - 40000.40%202001 - 40000.40%174001 - 75000.75%17Page 5
2018 Supplier Scorecard CriteriaOwner: Don Cook4001 – 75000.75%157501 – 100001.00%157501 - 100001.00%1010001 - 200002.00%1010001 – 150001.15%520001 – 250002.50%5 15000 1.15%0 25000 3.50%0Product Partner Scorecard:DPPM Score0 - 40004001 - 75007501 – 1000010001 - 2000020001 – 25000 25000%0.40%0.75%1.00%2.00%2.50% 3.50%Points151311750Electronic Distributors and Transactional suppliers:DPPM Score0-230231-480481-960961-18601861-3460 6210Yield99.977% 599.952%99.904%99.814%99.654% 99.379% 4Points2018151052d. SCARSupplier Corrective Action (SCAR),SCARs can be issued to a supplier in several cases. Such cases include Supplier orManufacturer fault NCMRs that significantly impact NI manufacturing and/or NIcustomers.Factors that NI considers when assessing whether a SCAR is warranted are asfollows but not limited to: Customer request for CA from National Instruments and an effective NIresponse is dependant on CA by NI supplier A noncormance that results in a line down situation or caused substantialrework The review authority belives the problem is not an isolated event and willpersist unless brought to the suplier’s attentionPage 6
2018 Supplier Scorecard CriteriaOwner: Don Cook Supplier business relationship (decision to disengage has already beenmade) The quantity rejected will prohibit the supplier fro achieving the agreedupon DPPM goals for the reporting period Evidence that previous CA has not been effectiveA supplier starts out with 10 given points in this category. A given SCAR deductspoints from this 10 point bucketSee table below for SCAR scoring methodology:SCAR Count0123 4SCAR Quality Pointsawarded108520Note 1: A thorough 6 step root cause analysis and corrective action is required for all red and orangeSCARs, including a Why Happened? and Why Escaped?III. SUPPLY ASSURANCE (3 part section) – 30 points totalSupply Assurance is worth 30% of the total scorecard or 30 points total.Note: Section does not apply to OEM Scorecarda. On-Time Delivery formulaOn Time Delivery is the percentage of line items actually received “on-time” ascompared to the supplier’s measured delivery date-DD (weighted at 75%) and thepercentage of line items actually received “on-time” as compared to the supplier’sOriginal Promise Date-OPD (weighted at 25%). “On-time” receipt is defined as deliveryto NI’s dock from seven days early to one day late. On time delivery is measured byReceipt Date compared to Oracle PO line “Need By Date,” to determine a supplier’s OnTime Delivery performance.The calculation is: number of receipts delivered on timetotal number of shipmentsPage 7X 100 (rounded up at .5)
2018 Supplier Scorecard CriteriaOwner: Don CookIn the case of deliveries to multiple sites across NI (NIC, NIH for example), the totalcount of deliveries during the quarter for both sites will be compared to the numberof deliveries not on time. This section is weighted 15% of the total scorecard. Whenreporting quarterly metrics per supplier, take the total count of deliveries during all 3quarters for both sites compared to the number of deliveries not on time for all 3quarters.b. On-Time delivery scoringCriteria for all suppliersData 98% 97% 96% 95% 94% 90% 80% 80%On –Time DeliveryScore (Points)1514131210520c. Lead Time formulaThe average lead-time (including transit time) in business days for all items with aforecast greater than 0 and sourced from the supplier. The section is weighted 10%of the total scorecard.The calculation is:Sum of all Supplier lead-times (includes transit time) in daysNumber of part numbers purchased from Supplier(rounded down at .5)d. Lead Time scoring by commodityFollowing is the ranges of lead times by commodity, categorized in ranges of actualLead Time performance for that commodity (less than average, average, and betterthan average). The unit of measure is business days. GCM’s have the discretion toselect the specific score within the point range based on supplier performance.Lead Time Matrix for Scorecard CriteriaPerformance RangeBelow AverageAverageAbove AveragePoints0-56-910Distribution, Asic’s(we do not evaluate LT performance)Page 8
2018 Supplier Scorecard CriteriaOwner: Don CookPoints0-45-78-10Software & Print 1210-110-9Hardware, Packaging 106-100-5Labels 2016-190-15Plastic Injection Molded 4530-450-30High Tech PCB's 4535-400-35Low/Medium Tech PCB's 4031-400-30Cables 6041-600-40Complex Assemblies 8051-800-50Die Cast Painted Assemblies 6041-600-40Points0Metal (Extrusion, Sheet Metal) 60251-60441-50631-40816-3010 15e. Operational EffectivenessIn Distribution & Assy's, Lead Time has been taken from the Supply Assurancesection and “Operational Responsiveness” is going to be evaluated in it’s place.The Operational Responsiveness metric is based on the supplier’sfeedback measurement from the published metric on shortage handlings,OVS, Open Order etc.The section is worth 10 points, broken into two categories. One is the Ratioof the supplier responses on the published reports, the another is the ratioof the acceptable answers.Calculation for Operational Responsiveness :Ratio oftotal number of received answersResponsesX 100 (rounded up at .5)number of sent out linesRatio Acceptable:total number of acceptable answerstotal number of received answersPage 9X 100 (rounded up at .5)
2018 Supplier Scorecard CriteriaOwner: Don CookOperational Effectiveness Point Scale (10pts)Ratio AcceptableRatio Sent (5p)543210f. VDL scoring(Vendor Discrepancy List)The number of Closed VDL’s (Receiving discrepancy) which a supplier causes (asnoted per the VDL responsibility of “Supplier”) will be accounted for, compared to thenumber of line items Received, as a percentage. The section is weighted 5% of thetotal scorecard.VDL's .40% .40% - .70% .70% - 1.0% 1.00%Points5310IV. Business Alignment (3 part section) – 30 points totalTotal Cost is worth 30% of the total scorecard or 30 points total.Note: Section does not apply to OEM Scorecarda. Savings – 15%Annually, each GCM will set the Savings Expectation by supplier depending on thesupplier’s ability to provide Savings. Each quarter the commodity team will assessthe supplier’s performance to the goal & provide a corresponding point allocation.Total points possible 15.b.Ease of Doing Business – 10%The measure of a supplier’s flexibility, innovation, and overall ease of doing businesswith. This section is fairly subjective and will rely heavily on the GCM’s overallPage 10
2018 Supplier Scorecard CriteriaOwner: Don Cookexperience and judgment. Each quarter the commodity team will assess the supplier’sperformance to the goal & provide a corresponding point allocation.Total points possible 10 points for Component team plus 5 points below on IV.C.),15 points for Mechanical team (Mech team will put all 15 points on Ease of DoingBusiness).An example of being flexible: Supplier working with NI to take back excess materialand/or working with NI on strategic projects & programs.An example of innovation: Supplier providing analysis and recommendations onhow often their parts should be bought annually, in order to optimize buy cycles forboth the supplier and NI – resulting in decreased costs for both companiesC. NPI Quote Turnaround Metric (5 points total – Component Team only)# of Avg Days1-6 days6-8 days9 -12 days13 days Points5430V. CUSTOMER SERVICE/SUPPORT – 10 points totalCustomer Service/Support is worth 10% of the total scorecard or 10 points total. Twomain groups of NI personnel (Procurement and Non-Procurement) provide input onsupplier performance through supplier survey questions.Note: This portion of the scorecard is only exercised in Q1 and Q3 quarters forMechanical team but is exercised every quarter for Component team.Note: Section does not apply to OEM Scorecarda. Rating definition: NI Procurement PersonnelThe average of ratings on a scale of 1 to 5 given by the appropriate NIProcurement personnel to specific questions relating to customer service andsupport.Different commodity areas have different surveys. The section isweighted at 5%.Page 11
2018 Supplier Scorecard CriteriaOwner: Don Cookb. Rating Definition: NI Non-ProcurementThe average of ratings on a scale of 1 to 5 given by appropriate NI NonProcurement personnel to specific questions relating to customer service andsupport.Different commodity areas have different surveys.The section isweighted at 5%.c. Service/Support formula:The calculation is:Sum of all rating scoresTotal number of ratings received(rounded)VI. Supplier Scoring BracketsA four-quarter rolling average calculation is used to place select suppliers intoperformance brackets. The brackets range from 1 to 4, with Bracket 1 suppliersachieving the higher cumulative scores. The objective is to use brackets as a toolfor guiding business consequences as a result of performance. Below are thescoring brackets.Bracket 1: 90Bracket 2: 89-85Bracket 3: 84-75Bracket 4: 75This document is stored in the following upplier Assessment Criteria 2018.pdf\\nirvana\Procurement\Supplier Performance\Supplier Metrics\Supplier Scorecards\ScorecardSpecification and Process Documents\2018Page 12
Supplier Scorecard: Cable, Metal, Plastic, Flex PCB OEM Scorecard: Hard Drive, RF Specific Supplier Scorecard: ChassisOEM Scorecard: Power Supply DPPM Score % Points DPPM Score % Points 0 - 2000 0.20% 20 0 - 4000 0.40% 20 2001 - 4000 0.40% 17 4001 - 7500 0.75% 17 Supplier Scor
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4.1.1 The AIP — Cook Islands includes this manual and the AIP Supplement — Cook Islands. 4.1.2 Amendments to the AIP — Cook Islands are issued at regular intervals in accordance with the ICAO AIRAC schedule. The amendment cycle for the AIP — Cook Islands is shown in Table GEN 0.1 - 1 . Table GEN 0.1 - 1 Amendment Schedule
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