Appendix G: Supplier Performance Scorecard
Supplier Quality Requirements Supplement (SQR)Page 1 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify thelatest version of this document, go to http://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go towww.kohler.com; Suppliers; Conducting Business.Appendix G: Supplier Performance ScorecardRevised 12/1/2012Purpose: The Kohler Co. Supplier Scorecard will measure supplier performance on a monthly basis. Supplierperformance data will be collected and used for periodic supplier business reviews and decision making in thefollowing areas: Continuation of supply Extension of supply (additional business) Termination of supply Performance recognitionScope: The scope of this scorecard includes all purchased materials, primarily focused on direct materials. Onescorecard per supplier will be generated*, encompassing all parts procured, on a monthly basis. A scorecard can becompleted for a supplier at specific location/division or across multiple locations/divisions. This is left up to thediscretion of the applicable purchasing organizations and the preference of the supplier.*The Kohler Engine Division commodity teams determine which suppliers will receive a monthly scorecard. This isnot an all-inclusive program due to resource limitations.Scorecard CategoriesPointsQualityDefective PPMSCARs – Count– ResponseSupplier Audits1515515DeliveryOn-Time % net of Stock-outsLead Time1510PriceTrendTermsWeight50SAP Quality Module data as collected in the Data WarehouseSAP Quality Module – quality notificationsSAP Quality Module – quality notificationsSupplier audit records/audit database25PDW Delivery Cube for OTD%, Stock-outs are manualPDW Spend Cube25Total PointsEase of Doing BusinessResponsivenessGovernanceTechnical SupportAdvanced ProcurementLeading Edge ProcurementElectronic Data Interchange1510100Manual evaluation – see Kohler Engine Division Price Trendguidelines used by buyers to determine trend scores.Vendor Master in SAP, convert manually to Equivalent Days12444Informational score only. Not included in overall score.Manual evaluation by commodity team members.844Informational score only. Not included in overall score.Manual evaluation by commodity team membersQuality – Comprised of four parts: Defective Parts Per Million (DPPM), count of Supplier Corrective ActionRequests (SCARs) initiated during the current month only, an evaluation of the supplier’s responsiveness to theSCAR(s) open yet from previous months and those closed during the current month that had remained open fromprevious months, and the supplier’s audit score.Defective PPMSCAR CountSCAR ResponseSupplier AuditTotal Quality Points151551550UNCONTROLLED IF PRINTEDKohler Engines SQR Supplement, Rev. M, Appendix G, Dec. 1, 2012
Supplier Quality Requirements Supplement (SQR)Page 2 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify thelatest version of this document, go to http://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go towww.kohler.com; Suppliers; Conducting Business.Scoring Parameters and Corresponding Points:SCAR response calculation applies to Kohler Engines division specifically.RangeDefective PPMFinished GoodsDefective PPMRaw Castings or or or or or or 01005001,0005,00010,00010,000Range or 500 or 1,000 or 3,000 or 10,000 or 20,000 or 30,000 30,000Points15141310530Points15141310530New SCARs issued within current monthPlant Avg. CountPointsCount(Ref. Not1 below)015110253 or more0Supplier Response- Avg. No. of Days Past DueResponseTotal Possible Points- Avg. No. of Days Past Due SCAR Response Score5.00.05.0Note 1: Consequences of HIGH and URGENT priority level SCARsContainment Levels DefinedLevel 1 Containment:Supplier, at supplier's facility, 100% inspects material before shipment to Kohler Engines.- applies to specific material number(s) where a defect(s) is suspected/known.Level 2 Containment:Supplier sends material to be 100% inspected by a third-party before shipment to Kohler Engines.- can apply to all materials provided to Kohler Engines by the supplier, or a specific material number(s).NOTE FOR CASTING SUPPLIERS:Depending on the level of containment required, casting suppliers will provide personnel from their own facility,or a third-party inspection facility, to Kohler to perform inspection/sort of product after the machining process.SCAR Priority LevelURGENTHIGHConsequence to supplierMonthly Q Score drops to 0, Level 2 Containment (applies to specific material no.)Monthly Q Score drops to 10, Level 1 ContainmentData Sources:The DPPM and SCAR Count information will ultimately be collected in the Data Warehouse through the SAPQuality Module, but for the locations not on SAP or that do not have the Quality Module yet implemented,alternative methods will need to be used. Communication between the buyer, quality department, andreceiving/inspection for the respective locations will be necessary until the SAP QM or other quality reportingsystem can be utilized. The SCAR Response will also be measured by the SAP Quality Module, however, prior toimplementation should be determined between the buyer and other parties previously mentioned.UNCONTROLLED IF PRINTEDKohler Engines SQR Supplement, Rev. M, Appendix G, Dec. 1, 2012
Supplier Quality Requirements Supplement (SQR)Page 3 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify the latestversion of this document, go to http://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go towww.kohler.com; Suppliers; Conducting Business.Low quality scores (based on a rolling 12 month average) will affect the supplier’s ability to dobusiness with Kohler Engines as follows:Consequences to supplier(based on rolling 12 month Quality Scores)Component iticalQ Score 23Q Score 19Q Score 15Level 1 Containment, Level 2 Containment, Level 2 Containment,RI inspectionRI inspectionRI inspectionLevel 1 Containment,RI inspectionRI inspectionNew business holdPrepare to re-source Re-source businessNew business holdPrepare to re-source Re-source businessCalculations:Defective PPM * # of Defective PartsTotal Part ReceivedSCAR Count ** Total new SCARs issued during current monthSCAR ResponsexTotal # of days past due for open SCARS and thoseresponded to in the current month.Total # of open and responded to SCARs 10 6 Avg. Days Past Due* DPPM will be a weighted average by number of parts received across all plants served** SCAR Count is averaged across number of plants served so as not to penalize multi-plant suppliersDelivery – Comprised of two parts: on-time delivery percentage net of stock-outs, and lead-time, which is weighted byspend. Stock-outs will only be counted if the supplier is at fault for the stock-out. Parts considered on an LEPprogram will be considered on-time 100% of the time.On-Time Delivery – Net of Stock Outs15Lead-Time10Total Delivery Points25Scoring Parameters and Corresponding PointRangeOn-time % or or or or or 9893858070Points15131074Lead TimeUNCONTROLLED IF PRINTEDKohler Engines SQR Supplement, Rev. M, Appendix G, Dec. 1, 2012Count 1 day (24 hrs) 3 days 7 days 15 days 30 days30 daysPoints1086432
Supplier Quality Requirements Supplement (SQR)Page 4 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify the latestversion of this document, go to http://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go towww.kohler.com; Suppliers; Conducting Business.CountStock-outsPoints00 2-5 4-10 4-15Data Source:The On-time delivery data is collected in the Data Warehouse. “On-time” includes receipts from 3 days earlyup to 0 days late. No formal tracking of stock-outs has been established, but communication between the buyer andthe materials manager should occur for this information. Including stock outs in the calculation is only applicable tosuppliers with parts on an LEP program, and will only be measured when resulting from the supplier’s actions orfailure to act.Calculation:On-time Delivery Number of Orders Delivered On-time*Total Number of Orders DeliveredStock-outs Total Count of Stock-outs (supplier at fault)Lead Time ** Lead Time in days x Spend for each material numberTotal Spend for each material number*x100%On-time delivery is defined as the range from 5 days early to 0 days late. Number of orders is measure byreceipts in the current month.** Lead Time calculation is weighted by spend on individual material numbersPrice – Comprised of two parts: trend and terms.TrendTerms1510Total Price Points25Price Scoring Parameters and Corresponding Points:TrendRatingPositive TrendNeutralNegative TrendPoints1284Terms(Days)Equivalent60 50 40 30 30Points108640Data Source:The Trend rating (ref. Note 2 below) will be determined by the best judgment of the buyer. The DataWarehouse Pricing & Savings cube collects historical pricing information which should be used in the evaluation,but it does not include factors such as industry pricing trends or improvements to the purchased item. The buyershould utilize all information sources available in determining the rating for Price Trend. To reduce subjectivevariation, the target price for a strong supplier performance in price is 12, average is 8, and poor is 4. These areguidelines from which buyers should use discretion in increasing or decreasing points. The full 15 points for thiscategory should rarely be awarded.UNCONTROLLED IF PRINTEDKohler Engines SQR Supplement, Rev. M, Appendix G, Dec. 1, 2012
Supplier Quality Requirements Supplement (SQR)Page 5 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify the latestversion of this document, go to http://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go towww.kohler.com; Suppliers; Conducting Business.The Terms information is available in SAP in the vendor master file. Any terms which include a discountor PROX terms should be converted to the equivalent days. This conversion takes discount or PROX terms andcalculates how many days Kohler would need to delay payment at the current cost of capital to achieve similarsavings as the discount. A chart of all payment terms in SAP and what each converts to, along with supportingequations, is available on the Global Procurement website under Operating Measures – Days Payable Outstanding.Note 2: Kohler Engine Division Price Trend Scoring GuidelinesPricing Trend Score DefinedScale 0-15DefinitionsMarket Forces- Impacts to supplier's cost that are totally out of supplier's control. i.e. Commodity Raw Materials, Energy, CurrencyOther Costs considered in Kohler Cost- Freight Terms, Warranty ParticipationScore151210864203% decrease in actual to actual cost to Kohler year over yearSupplier absorbs market forces and decreases Kohler's cost 3%No change in Kohler cost but market forces are absorbed positive and negativeMarket forces shared Kohler cost sheltered from full market impactsMarket forces shared in an unfavorable manner to Kohler token effort to share impactKohler absorbs any and all impacts of market conditionsKohler cost increase in excess of market conditions or non-substantiated or pricing not tied to recognized market indicesKohler cost increase in excess of market conditions or non-substantiated implemented in a non consensual mannerInformational Scores Only - The Ease of Doing Business and Advanced Procurement Scores are provided forinformation purposes only and are not included in the overall supplier score.Ease of Doing Business – Comprised of three parts: responsiveness, governance, and technical support.ResponsivenessGovernanceTechnical Support444Total Ease of Doing Business Points12Scoring Parameters and Corresponding Points (for each):Never01Average23Always4Responsiveness - Quick and thorough to requests, reasonably accomodates changesGovernance - Very little required in areas of Quality, Technical, or DeliveryTechnical Support - Provides accurate and acceptable solutions in timely mannerData Source:The buyer, who should discuss the supplier’s performance with other parties such as quality, engineering, andaccounts payable, will determine this rating.These three ratings are to be used for judging a supplier’s performance in general areas that cannot be quantifiablymeasure. For example:Responsiveness:Governance:Technical Support:Is the supplier quick to make changes as requested, easy to deal with, andmakes an effort to meet and exceed Kohler expectations?Does continual attention need to be paid to this supplier, monitoring of pricechanges without communication, or repeated contact to resolve issues?Does the supplier strive to find creative and sound solutions whereapplicable, working to improve costs, reduce defects, etc.?UNCONTROLLED IF PRINTEDKohler Engines SQR Supplement, Rev. M, Appendix G, Dec. 1, 2012
Supplier Quality Requirements Supplement (SQR)Page 6 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify the latestversion of this document, go to http://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go towww.kohler.com; Suppliers; Conducting Business.Advanced Procurement – Comprised of two parts: Electronic Data Interchange (EDI) for purchase orders andinvoices, and Leading Edge Procurement (LEP) for inventory.Electronic Data InterchangeLeading Edge ProcurementTotal Advanced Procurement448Scoring Parameters and Corresponding Points:% OnPointsLEPEDI 25025 150 275 31004One (1) point for electronic tranactions occuring in each categoryPurchase Orders from Kohler Co.Invoices to Kohler Co.Advanced Shipment Notice (ASN) to Kohler Co.Electronic Funds Transfer (EFT) for payment from KohlerData Source:LEP is determined by the percentage calculated below. This information is pulled from the Data WarehouseSpend Cube where available. Note that LEP can only be tracked for spend with material numbers, therefore whencapturing information be sure to only measure LEP spend against total spend on material-numbered items (Denotedin the Data Warehouse as “SAP”).Calculations:Leading Edge Procurement Spend on LEP MaterialsTotal Spend on Material-numbered ItemsA sample scorecard is shown in the following pages.UNCONTROLLED IF PRINTEDKohler Engines SQR Supplement, Rev. M, Appendix G, Dec. 1, 2012x100%
Kohler Engine DivisionSupplier Quality Requirements Supplement (SQR)Page 7 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify the latest version of this document, go tohttp://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go to www.kohler.com; Suppliers; Conducting Business.UNCONTROLLED IF PRINTEDKohler Engines SQR Supplement, Rev. M, Appendix A, Nov. 1, 2012
Kohler Engine DivisionSupplier Quality Requirements Supplement (SQR)Page 8 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify the latestversion of this document, go to http://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go towww.kohler.com; Suppliers; Conducting Business.Supplier NameQualityDefective Parts Per MillionMM - YYYYPlantEK/EHParts Rcvd66,110Defective221DPPM3,343Range or or or or or or Weighted Ave. DPPMSCAR ResponseAvg. number of days past dueIncludes SCARS respondedto in current month, plusSCARs still open fromprevious months.See Defect Detail tab when DPPM 5005SCAR #Issue DatePriority *Part No.SCAR#Due DateResponse DateNew SCARs issued within current monthPlant Avg. CountPointsCount015110253 or more00Days Past Due0.00Supplier Response- Avg. No. of Days Past DueResponseTotal Possible Points- Avg. No. of Days Past Due SCAR Response ScorePlant Average CountPoints Aw ardedSupplier Audits01005001,0005,00010,00010,0003,343Points Aw ardedSupplier Corrective Action RequestsSCAR CountNew SCARs issuedw ithin the current scorecardmonth. Ref. Note 1. 0.05.00.0Average Days Past Due5.0Points Aw ardedAudit ScoreAudit ScorePoints65.40 60%15Points Aw arded15.0 40%5 40%0If an audit has not yet been completed, the supplier will be awarded 15 pointsDeliveryOn-Time Delivery & e %(If parts on LEP)Stockouts or 98%15EK191895%0 or 93%13EH77100%0 or 85%10 or 80%7 or 70%4 70%0CountPointsPlantStock-outsWeighted Avg (by spend). OTD%96.750Points Aw arded130.00PointsRangeOn-time %00 2-5 4-10 4-15Plant Avg. Stockouts (only LEP parts)Net OTD% & StockoutsPoints DeductedPoints13See Delivery Detail tab when delivery score is less than 15 points.Lead Time ImprovementPointsLead-TimePoints Aw arded10 3 days8 7 days6 15 days4 30 days or 30 days328Lead Time in days x Spend for each material number Total Spend for each material numberLead Time ** 1 day (24 hrs)PriceTrendTrend (ref. Note 2)Payment TermsBuyer Rating (Points Aw arded)8Average DPO EquivalencyPoints Aw g Guideline1560 10Positive Trend1250 8Neutral840 6Negative Trend430 4 30Ease of Doing BusinessPoints Aw arded0RangeResponsivenessQuick and thorough to requests, reasonably accomodates changes44 Alw aysGovernanceMinimal monitoring required in areas of Quality, Technical, or Delivery43 OftenTechnical SupportProvides accurate and acceptable solutions in timely manner42 Average1 Rarely0 NeverAdvanced ProcurementLeading Edge Procurement% 22,9491004Total Spend 50,01475 350 25 21 250LEP %Electronic Data InterchangePointsLEP Spend46%LEP Points Aw ardedUNCONTROLLED IF PRINTEDEDI Points Aw ardedKohler Engines SQR Supplement, Rev. M, Appendix A, Nov. 1, 201214
Supplier Quality Requirements Supplement (SQR)Page 9 of 9This manual is intended for use by Kohler Engines Division suppliers as a supplement to the Kohler Co. Global Supplier Quality Manual. To verify the latestversion of this document, go to http://www.kohlerengines.com/sqr/index.htm. To access the Kohler Co. Global Supplier Quality Manual, go towww.kohler.com; Suppliers; Conducting Business.Rev. LevelMDate12/1/2012Revision HistoryChange DescriptionSignificant changes to Quality section – weights, scores,calculations. Updated Advanced Procurement and Ease of DoingBusiness sections. Updated example scorecard.UNCONTROLLED IF PRINTEDKohler Engines SQR Supplement, Rev. M, Appendix G, Dec. 1, 2012Changed BySupplier Quality
A scorecard can be completed for a supplier at specific location/division or across multiple locations/divisions. This is left up to the discretion of the applicable purchasing organizations and the preference of the supplier. *The Kohler Engine Division commodity teams determine which suppliers w
Single Supplier Scorecard (SSS) What is Single Supplier Scorecard (SSS) Single Supplier Scorecard reports the performance of the supplier. Internal user can select one of the Supplier Name for Single Supplier Scorecard. External user, the Supplier is pre-assigned to the dedicated Supplier. Supplier
Assign a scorecard template to a new scorecard to transfer the scorecard components and their weightings to the scorecard. To guarantee that the components on the scorecard cannot be removed or modified, lock the scorecard. See Chapter 8 of the Hyperion Performance Scorecard – Sy
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
Apr 05, 2021 · Supplier Delivery Performance Scorecard Definitions Document Delivery: For the purposes of this tracking tool, delivery means the portion of the Supplier Scorecard that is the summary of delivery performance data based on pieces or ASN Lines. PO Due Date: The date on the PO sent to the supplier
Supplier Submits Scorecard Monthly. Division/Dept: NAP/SQD Supplier Characteristics Improvement Supplier Name, Supplier Location (City, State/Province), and 8-Digit Honda Supplier # Please enter at top of form where indicated. For the 8-Digit
How to Create a Successful Balanced Scorecard What is a Balanced Scorecard The balanced scorecard is a concept and tool first conceived by by Robert Kaplan and David Norton. The balanced scorecard idea debuted in the Harvard Business Review in 1992. "The balanced scorecard retains traditional financial measures. But financial measures tell the .
Issue of orders 69 : Publication of misleading information 69 : Attending Committees, etc. 69 : Responsibility 69-71 : APPENDICES : Appendix I : 72-74 Appendix II : 75 Appendix III : 76 Appendix IV-A : 77-78 Appendix IV-B : 79 Appendix VI : 79-80 Appendix VII : 80 Appendix VIII-A : 80-81 Appendix VIII-B : 81-82 Appendix IX : 82-83 Appendix X .
2 Supplier Directory Services 3 Supplier User Management 4 Assessments 5 Managing Supplier Registration and Qualification 6 Managing Supplier Profiles 7 Managing Supplier Performance 8 Notifications 9 Managing Supplier Classifications 10 Managing Supplier Hierarchy. x
