Supplier Scorecard Activity

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Supplier Scorecard ActivityKick-Off Meeting – July 14, 2020

Division/Dept: NAP/SQD1.2.3.4.5.Supplier Characteristics ImprovementBackgroundApproach – Monthly Scorecard AnalyticsEngagement Process FlowSupplier Communication/RequestsPath Forward – 97 Ki

Division/Dept: NAP/SQDWorkforce Challenges in Manufacturing?FULL EMPLOYMENT (4 - 5%)3.6%Pre-coronavirus unemployment at unprecedented lows, forecasted tocontinue in 2020 through the next 10 years. Post-coronavirus –dynamics may have changed, focus must still be on workforce stability.Historical DataForecasted TrendProactive Management Necessary to Promote Manpower Stability and Skill Level - Stable Operations

96ki Business Plan- DeliverySupplier CharacteristicsImprovementDivision/Dept: NAP/SQDN.A. DT TotalsN.A. UTR Totals9,0008,798 8,9318,263 8,4146,581 6,6776,3735,934 8055,0715,0003,00027,86430,0002,04567883102 171 3502,1992,3613,8932,076512 6554,1438309951,784 1,9621,448 1,6221,178 1,33023,86426,028 27,09422,01524,24221,10320,00095ki Actual4,6273,7174,301 4,38229,40130,73715,00096ki Actual10,0005,0001,365- 1,08096516,85313,25815,5669,26611,586 12,55614,1517,59012,8687,5655,47610,556 11,5009,3384,0717,8872,7786,5803,713 5,1942,08910,21196ki Target14,90595ki Actual96ki Target96ki ActualMARKET IMPACTImprovement demonstrated over time; however, recent results show there is still progress to be made.Collaborate Together to Continue Improving Characteristics

Division/Dept: NAP/SQDStrengthen Supplier Operational Characteristics 96ki Results & Root Cause Plant Impact: Supplier Downtime & Units to Repair 96KiWeakOperationalCharacteristicsCommon ThreadsReflection Process Control Compliance100% of top DT & 70% UTR① Change point controlChange Point / Equipment Validation② Abnormal Process Control③ Process Control (PQCT) Market Impact: Supplier Juhin 96Ki④ CCP Management45% of JuhinChange Point / AbnormalProcess ControlScorecard Data Advanced Risk Sensing Labor Stability Q&D Performance New Technology Local Labor Competition Significant Change PointsDelivered Quality Improvement Activity - Evaluate/Reconsider Current ProcessesCollaborate Together for Support and Process Improvement

Division/Dept: NAP/SQD1.2.3.4.5.Supplier Characteristics ImprovementBackgroundApproach – Monthly Scorecard AnalyticsEngagement Process FlowSupplier Communication/RequestsPath Forward – 97 Ki

Operational Stability Assessment ScorecardDivision/Dept:NAP/SQDDivision/Dept: NAP/SQDSUPPLIER NAME:SUPPLIER LOCATION:8-DIGIT SUPPLIER #:2020Baseline96 Ki ntsGapC/MInternal (Provided by Supplier) Metrics - Production CharacteristicsEfficiency P vs. A (Process #1)Please select: OEE, PPH, SPM, OtherN/AAvg. Hours OT per Direct Associate per MonthPlease select when: week, weekend, bothN/AAny Lines Working 7 Days?If Yes, how many lines and what EFALSEFALSEFALSEFALSEN/APM Completion RateScrap RateAny Parts on Sort (internal or Honda driven)?If Yes, how many and why?N/AFinished Goods Inventory (avg. %)No. of Expedites for the MonthService Parts Backorder Status (if applicable)IOO/RKD Backorder Status (if applicable)Tier 2 Quality PerformanceTier 2 Delivery PerformanceInternal (Provided by Supplier) Metrics - HR & SafetyContingent to Perm Ratio (Production Associates Only)Direct Associates (Contingent & Perm) - Staffing PlanDirect Associates (Contingent & Perm) - Actual #Coverage % IncludedDirect Associates Turnover % - Perm StaffDirect Associates Turnover % - Contingent StaffN/A100%0Supplier Internal Characteristics Factory – OEE, Quality Rate (Scrap), ShippingWindow Achievement, AH Service Backorders, etc. Manpower – Perm/Contingent ratio, T/O,Absenteeism, Staffing Plan vs. Actual00N/AN/AN/A 5% 10%Direct Associates Daily Unavailability %Supplier SubmitsScorecard Monthly( A ll - une xc us e d, P T O , F M LA , e t c .)Indirect Associates - Staffing PlanN/AIndirect Associates - Actual #N/AIndirect Associates Turnover %OSHA / WSIB Recordables(Provided by Supplier) Business ForecastUpcoming NM Growth (Honda, other OEM), SupplierExpansion/Relocation?New Technology (New System/New Process/Technology to the Facility)?AnyOther the Local LaborMarket?Do you have any requests/concerns for Honda?External (Provided by Honda) Metrics 5%Supplier Internal Characteristics – Future Risk Change Points NM Growth – Honda, other OEM New Technology Local Labor Market CompetitionCommentsQuality TRs IssuedMeanQuality IndexMeanHTRs Average Days OpenNo. of A Rank HTRsPPMDelivery TRs IssuedDelivery IndexDTRs Average Days OpenNo. of A Rank DTRsWarranty MIRs Issued140MeanHonda Plant Side Performance –Supplier QD, A Ranks, UTR, D/T, etc.MeanMean140MeanD/T0UTR0GDP6-7 Day Work Schedule0Purchasing and Suppliers to Proactively Work Together – See Risk Early & Eliminate Production Impact

Division/Dept: NAP/SQDSupplier Characteristics ImprovementSUPPLIER SCORECARD INSTRUCTIONS (REFERENCE DOCUMENT TO BE PROVIDED)Supplier Name, Supplier Location (City,State/Province), and 8-Digit Honda Supplier #Please enter at top of form where indicated. For the 8-Digit Supplier # (XXXXXX-XX), please include the dashbefore the final two numbers (location code).BaselineResults from your prior ki – actual (can be reported as monthly avg.).Targets for each metricFrom business plan (all targets need to be filled in with internal or business plan targets for each area, except forthe targets that are pre-populated with a specific value or N/A. Targets required to be entered by supplier areindicated in yellow.)CommentsIf any data entered requires explanation, please note in comments.Gap and CountermeasureFor areas not meeting target, please enter Gap & C/M if determined. For any metrics that appear in red formultiple months, please enter Gap & C/M.Unless otherwise noted, all data is to be reported based on plantwide performance (not Honda lines specific).PRODUCTION CHARACTERISTICSEfficiencyEfficiency can be reported as tracked: OEE, PPH, SPM, etc. Multiple rows can be added on the scorecard forvarious process types. Please enter actual plantwide avg. for the month along with the target, and select whatthe data represents (OEE, PPH, SPM, Other). If Other, please enter in comments what the data represents.Avg. Hours OT per Direct Associate per MonthEnter 0 if none (as well as target) and move to next metric. If OT hours worked, please enter average number ofhours OT per direct associate for the month and enter target. If OT hours worked, please select if the OT is duringthe normal work week, weekend days or combination (both).Any Lines Working 7 Days?(Refers to Honda lines) If yes, please provide details as noted.PM Completion RatePlan vs. actual on scheduled PMs, to gain understanding if any past-due PMs (if any, please note in comments orgap & C/M columns).

Division/Dept: NAP/SQDSupplier Characteristics ImprovementPRODUCTION CHARACTERISTICS (continued)Scrap rate(Additional rows may be added as needed) – Please report whatever metric (typically a percentage) is used to track scraprate - overall/consolidated average or broken down by process type: actual for the month and target per your business plan.Any Parts on Sort (internal or Hondadriven)?(Refers to Honda parts) If yes, please provide details as noted – how many (various parts) and reason for sort.Finished Goods Inventory (Avg. %)For each shipping day of the month, how many days at or above target for finished goods divided by total # of shipping daysin the month (as a %). [Example: month has 22 shipping days and 21 of those days met the target for min. finished goodsinventory. 21 22 95.5%]No. of Expedites for the MonthNumber of expedites during the month for Honda shipments. If none, please enter 0.Service Parts Backorder StatusIf Honda service parts are applicable, please note the number of parts backordered as of month end or if none backordered,please enter 0. If you do not supply Honda with service parts, please enter N/A.IOO/RKD Backorder Status(RKD is “reverse knock down”/export) – If Honda IOO/RKD parts are applicable, please note the number of partsbackordered as of month end or if none backordered, please enter 0. If you do not supply Honda IOO/RKD parts, pleaseenter N/A.Tier 2 Quality PerformancePlease report whatever metric is used to track Tier 2 supplier quality performance (monthly avg.) and target.Tier 2 Delivery PerformancePlease report whatever metric is used to track Tier 2 supplier delivery performance (monthly avg.) and target.HR & SAFETYContingent to Perm Ratio (ProductionAssociates Only)Percentage of contingent to total production associates (please do not include support staff in this calculation).Direct Associates (Contingent & Perm)Staffing Plan vs. ActualActual and planned # of direct associates (contingent & perm) for the month. Coverage % Included: does staffing planinclude additional headcount to cover for average daily unavailability (vacation/PTO, FMLA/LOA, unexcusedabsenteeism/call-ins, etc.)? If no, please enter 0. If yes, please enter % of additional headcount included in plan forcoverage [example: entering 10% would indicate that 10% of staffing plan is coverage for daily unavailability and remainderof staffing plan (90%) is total headcount required to operate/run all processes).

Division/Dept: NAP/SQDSupplier Characteristics ImprovementHR & SAFETY (continued)Direct Associates Turnover % - Perm StaffInclude all turnover for the month: voluntary and involuntary.Direct Associates Turnover % - Contingent StaffInclude all turnover for the month: voluntary and involuntary.Direct Associates Daily Unavailability %All daily absences (vacation/PTO, FMLA/LOA, unexcused absenteeism/call-ins, etc.), reported as monthlyaverage.Indirect Associates Staffing Plan vs. ActualActual and planned # of indirect associates for the month.Indirect Associates Turnover %Include all turnover for the month: voluntary and involuntary.OSHA / WSIB RecordablesOSHA/WSIB reportable total for the month.BUSINESS FORECAST (New Model/Business Growth, New Technology/System Change, Local Labor Competition, Change Points)Please complete Business Forecast questions as noted (by selecting Yes/No for each question on a monthly basis). For any "Yes" answers in this section, please adddetails in comments.Any Other Significant Change PointsPlease refer to the Change Point Control section of the SQM for examples.EXTERNAL (PROVIDED BY HONDA) METRICSThis section is for internal Honda use – please do not enter any data.ADDITIONAL QUESTIONS?Any questions about completing the scorecard or items you wish to discuss, please contact Honda NA Supplier Quality & Delivery Supplier Development Team:Julie Feltovichjulie feltovich@ham.honda.com937-779-2592Tony Mariuccitony mariucci@ham.honda.com419-276-4145George Browngeorge p brown@ham.honda.com716-244-1256Tim Hitestim hites@ham.honda.com937-707-8867

Division/Dept: NAP/SQD1.2.3.4.5.Supplier Characteristics ImprovementBackgroundApproach – Monthly Scorecard AnalyticsEngagement Process FlowSupplier Communication/RequestsPath Forward – 97 Ki

Operational Stability Assessment ScorecardDivision/Dept:NAP/SQDDivision/Dept: NAP/SQDSUPPLIER NAME:SUPPLIER LOCATION:8-DIGIT SUPPLIER #:2020Baseline96 Ki entsGapC/MInternal (Provided by Supplier) Metrics - Production CharacteristicsEfficiency P vs. A (Process #1)Please select: OEE, PPH, SPM, OtherN/AAvg. Hours OT per Direct Associate per MonthPlease select when: week, weekend, bothN/AAny Lines Working 7 Days?If Yes, how many lines and what EFALSEFALSEFALSEFALSEN/APM Completion RateScrap RateAny Parts on Sort (internal or Honda driven)?If Yes, how many and why?Finished Goods Inventory (avg. %)No. of Expedites for the MonthService Parts Backorder Status (if applicable)IOO/RKD Backorder Status (if applicable)Tier 2 Quality PerformanceTier 2 Delivery PerformanceInternal (Provided by Supplier) Metrics - HR & SafetyContingent to Perm Ratio (Production Associates Only)Direct Associates (Contingent & Perm) - Staffing PlanDirect Associates (Contingent & Perm) - Actual #Coverage % IncludedDirect Associates Turnover % - Perm StaffDirect Associates Turnover % - Contingent StaffN/A100%0Supplier Internal Characteristics Factory – OEE, Quality Rate (Scrap), ShippingWindow Achievement, AH Service Backorders, etc. Manpower – Perm/Contingent ratio, T/O,Absenteeism, Staffing Plan vs. Actual00N/AN/A 5% 10%( A ll - une xc us e d, P T O , F M LA , e t c .)Indirect Associates - Staffing PlanN/AIndirect Associates - Actual #N/AExpansion/Relocation?New Technology (New System/New Process/Technology to the Facility)?AnyOther the Local LaborMarket?Do you have any requests/concerns for Honda?External (Provided by Honda) MetricsCommentsQuality TRs IssuedMeanQuality IndexMeanHTRs Average Days OpenNo. of A Rank HTRsPPMIf stableIf unstablecharacteristics characteristics (Provided by Supplier) Business ForecastUpcoming NM Growth (Honda, other OEM), Supplier 5%Supplier Internal Characteristics – Future Risk Change Points NM Growth – Honda, other OEM New Technology Local Labor Market CompetitionPathForward– 97 Ki OSHA / WSIB RecordablesHonda checks &confirms dataN/ADirect Associates Daily Unavailability %Indirect Associates Turnover %Supplier submitsscorecard MonthlyN/ASelfMonitoringSee NextSteps140MeanDelivery TRs IssuedDelivery IndexDTRs Average Days OpenNo. of A Rank DTRsWarranty MIRs IssuedHonda Plant Side Performance –Supplier QD, A Ranks, UTR, D/T, etc.MeanMean140MeanD/T0UTR0GDP6-7 Day Work Schedule0Purchasing and Suppliers to Proactively Work Together – See Risk Early & Eliminate Production Impact

Division/Dept:NAP/SQDDivision/Dept: NAP/SQDSupplier Characteristics Improvement FlowSupplier submits scorecard MonthlyHonda checks &confirms data13If stable characteristics Self monitoringIf unstable characteristics See Next StepsIf judged Ok based oninformation obtained,continue with monthlyscorecard submittaland trend monitoringHonda SQDcontacts supplierto discussconcern pointsIf judged NG –1. Hondacollaborationacross sites2. If needed, SQDon-site Genbaconfirmation visitPurchasing and Suppliers toProactively Work Together – See RiskEarly & Eliminate Production ImpactIf Genba visit judged Ok,continue with monthlyscorecard submittal andtrend monitoringIf Genba visit judged NG,depending on problemarea(s) determineappropriate assessment toolHold TMM withSupplier to reviewassessment findings –decide appropriate nextstep (Labor related,Factory related, etc.)Follow step by stepCharacteristicImprovement Process(reference next slide)ContinueMonthlyScorecard

Division/Dept: NAP/SQDHonda CompletesAppropriateAssessmentNext Steps - Characteristic Improvement Process EXAMPLEHonda/SupplierCollaboration - SAP❶ Themes developedfrom assessmentfindings❷ Supplier SAPPresentation❸ Implementation❹ Check Progress Labor FactoryOperational StabilityScorecard Overview of HR/Labormetrics (staffing plan vs.actual, turnover, etc.) Factory Performancemetrics to substantiateimprovementAssessment Findings Labor Stability Factory PerformanceRe-Assessment /Confirmation Supplier to presentself-assessment ofcurrent state based onimprovement activities SQD, SST and Site tocomplete Supplier ReAuditProject CompletionSupplier Operational Stability ScorecardLabor AreaFactoryMgmt.Honda Plant Metrics Target Criteria Achieved Factory Performance Stable Honda/Supplier Leadership Review& Judgement GO Project concludes Return to normal business processmonitoring / monthly scorecardsubmittal and trend monitoring NG Set new path forward

Division/Dept: NAP/SQD1.2.3.4.5.Supplier Characteristics ImprovementBackgroundApproach – Monthly Scorecard AnalyticsEngagement Process FlowSupplier Communication/RequestsPath Forward – 97 Ki

Honda HR Assistance & Training OfferingsDivision/Dept: NAP/SQD1. HR “Deep Dive” Engagement- High / Mid Risk SuppliersOperational StabilityAssessment (OSA) NA Suppliers - HR AuditSupplier Parts:Factory:Criteria for judgement : 1 Poor:2 Slightly Insufficient:3 Almost Enough:4 SufficientCategoryItemPoint of viewJudgeProduction Experience – Practical business & technical know-how and capabilityLeadership Viewpoint - Perspective relative to creating a positive working environmentTTL general laborEngineeringMgmt.Is there a manpower plan/forecast (year/month)SupplierParts:Factory: NA Suppliers - HR AuditWhen is approvalgiven tohire to the plan?Does Company advance hire?Manpower Planning &Is fortherea target:timeframeto fillSlightlyan openposition (P/A)?Criteriajudgement1 Poor:2Insufficient:3 Almost Enough:4 SufficientOpen positionsIs gap analysis conducted for hard to fill positions?CategoryItemIs there a method to monitor %’s and #’s of open positionsPointof view(Annual# of positions open)?Production Experience – Practical business & technical know-how and capabilityrecruitingBackground: PresidentAre& PlantMgt.methods and procedures established (Agency, advertising, social media)?LeadershipViewpoint- Perspectiverelativeto creatingpositiveworking environmentHow are shift assignmentsmanaged?Rotatingestablishedby clock# Samea fortemps?TTL general laborEngineeringMgmt.Less than 5%/MonthIs therea manpowerplan/forecast(year/month)Are reasons for turnoverunderstood(Is tempagency inquiring& monitoring)?Turn-Over %is approval loopgivenestablishedto hire to theplan?Is there a feedback When/ communicationto topand Dept. management?Does toCompanyadvance hire?Are action plans in placerespond?Manpower Planning &a targettimeframeRatio of candidates Isvs.thereopeningsat least1.1X to fill an open position (P/A)?Open positionsDoes agency have a documentedrecruitingplan (advertising,media etc.)Is gap analysisconductedfor hard tosocialfill positions?Temp staffDoes agency fill orderscompletelyandtoonmonitortime (%%’sorderrate)?Is therea methodandfill#’sof open positions (Annual # of positions open)?What is Temp/Hiring Candidates Is an applicant flowAreprocessin place?recruitingmethods and procedures established (Agency, advertising, social media)?Perm plan vs actualAre candidate poolin assignmentsplace?Howtargetsare shiftmanaged? Rotating established by clock # Same for temps?Is a “ready to hire”Less poolthanestablished5%/Month and maintained (prescreened / drug tested etc.)?Is there a process inplacefor Tempstaff to becomePerm(IsStaff?it well inquiringunderstood?Arereasonsfor turnoverunderstoodtempIsagency& monitoring)?Turn-Over%Less than 5%/MonthIs there a feedback / communication loop established to top and Dept. management?Absent %Is there an instability calculationdevelopedapplied?Are actionplanplansin place andto respond?Is there a reliability Ratioincentiveprogram? vs. openings at least 1.1Xof candidatesLess than 5% /YearDoes agency have a documented recruiting plan (advertising, social media etc.)Temp staffAre reasons for turnoverunderstood(Are exitinterviewsconductedandorderanalyzed)?Does agencyfill orderscompletelyandon time (%fill rate)?Turn-Over%Whatis Hiring Candidates Is an applicant flow process in place? to top and Dept. management?Perm plan vs actualAre action plans in placeto respond?Are candidatepool targets in place?Ratio of candidates vs. openingsat ntained(prescreened/ drug tested etc.)?Perm staffIs there a documentedrecruitingplan in(advertising,socialstaffmediaetc.)Is therea processplace for Tempto becomePerm Staff? Is it well understood?General LaborHiring Candidates Is there an applicantflowthanprocessin place?LaborLess5%/MonthAre%candidate pooltargetsin place forcalculationgeneral labor?AreaAbsentIs therean instabilityplan developed and applied?Is a “ready to hire”poolaestablishedfor generallabor (prescreened / drug tested etc.)?Is therereliability incentiveprogram?Less than 5% /MonthLess than 5% /YearAbsent %Is there a reliability incentive program?Are reasons for turnover understood (Are exit interviews conducted and analyzed)?Turn-Over% /YearLess than 5%Is there a feedback / communication loop established to top and Dept. management?Are reasons for turnover understood (Are exit interviews conducted and analyzed)?Are action plans in place to respond?Turn-Over %Is there a feedback / communication loop established to top and Dept. management?Ratio of candidates vs. openings at least 1.1XPerm staffAre action plans in place to respond?Is there a documented recruiting plan (advertising, social media etc.)Engineer &Are engineer positions filled with contract labor or perm laborGeneral LaborHiring Candidates Is there an applicant flow process in place?ManagementFor perm labor - Ratio of candidates vs. openings at least 1.1XAre candidate pool targets in place for general labor?Is there a documented recruiting plan (advertising, social media etc.)Hiring CandidatesIs a “ready to hire” pool established for general labor (prescreened / drug tested etc.)?Are interviewers provided candidate selection training?Less than 5% /MonthAre backgroundchecks and drug tests conducted?Absent%Is there filleda reliabilityincentiveprogram?Are management positionsfrom withinor hiredexternally?Less than 5% /YearAre reasons for turnover understood (Are exit interviews conducted and analyzed)?Turn-Over %Is there a feedback / communication loop established to top and Dept. management?Are action plans in place to respond?Engineer &Are engineer positions filled with contract labor or perm laborManagementFor perm labor - Ratio of candidates vs. openings at least 1.1XIs there a documented recruiting plan (advertising, social media etc.)Hiring CandidatesAre interviewers provided candidate selection training?Are background checks and drug tests conducted?Are management positions filled from within or hired externally?Background: President & Plant Mgt.LaborAreaJudge2. Supplier Workforce Stability Conference 3. Existing Honda Support Programs- 70% Suppliers Participating- Subject Matter Experts- Manpower Plng.- Contingent WorkforceMgmt.- Staffing Processes- Wage Competitiveness- Leadership /Succession Plng.- Working Conditions- Onboarding & Training- Associate Engagement- Communication- Overtime Mgmt.- HR SystemsLEAN ConferenceBest practices for workforce managementHonda Supplier Training Supplier Orientation – General Topics, Honda Requirements, SQCD Classroom Training Offerings include Topics such as: 5P, CATIA, FMEA,Strategic Planning, Succession Planning, Leadership Training Online LearningProviding Opportunities to Network, Share Best Practices, Identify Support Resources

Division/Dept: NAP/SQDSupplier Characteristics Improvement Requests Recognize this Tougher Economic Environment – Initiate Effort – Adapt Quickly Establish Scorecard Metrics and Rotate PDCA to Assure Effectiveness BEFORE a Crisishappens Complete & submit your scorecard to Honda on a monthly basis Make timely response to Warning Signs and Take Proactive Countermeasures, includingescalation of issues with your Mother / Sister Co. and notification to your Honda contacts Support Honda engagement to investigate risk areas and to apply appropriate C/M Utilize Honda provided resources to strengthen your Company’s CharacteristicsOur goal is to collaboratively work together to achieve aStable Workforce, Stable Production, and Eliminate Production Impact

Division/Dept: NAP/SQDItemSupplier Characteristics Improvement Schedule97 Ki Q297 Ki Q397 Ki Q498 Ki99 Ki❶ Kick-off❷ Supplier Monthly Scorecard SubmittalSupplierCharacteristicsActivity❸ Supplier Scorecard Analytics❹ Supplier Follow-up / ❺ Engagement ActivityQtr’ly ReportsQtr’ly ReportsQtr’ly / Yr End ReportsQtr’ly / Yr End Reports1. Conduct Supplier Kick-off2. Suppliers begin submitting monthly scorecards (data starting July 2020 96 Ki baseline)3. SQD completes data risk level analysis4. SQD investigates with suppliers for any clarification points5. SQD / Supplier consensus on path forward activity type / level

Division/Dept: NAP/SQDSupplier Characteristics ImprovementQ&A

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

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