Please veri#$ on-line t%at t%is is t%e latest revision ISG Atlanta SUPPLIER SCORECARD PROCEDURE Document Number: 497-0499!9 Re"#$#on: A Date: %une !&' !0(0 Pre)are* b+: R#c,ar* -en,orn' -ater#al$ Pro.ram -ana.er Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae 2 !" 11 Please veri#$ on-line t%at t%is is t%e latest revision Document C,an.e S,eet Re"#$#on Date De$cr#)t#on o/ C,an.e C,an.e Rea$on A 6/25/2010 &nitial Release Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae ' !" 11 Please veri#$ on-line t%at t%is is t%e latest revision NCR SUPPLIER SCORECARD D#rect -ater#al Su))l#er$ O0ER0IE1 (%e )*R Supplier Scorecard is t%e +easurin s$ste+ )*R uses to evaluate suppliers, per#or+ance- (%ese +easures lin. to )*R,s o/0ectives and 1ill /e used to evaluate our suppliers on t%eir contri/ution to t%ese o/0ectives- (%e scores t%at are enerated #ro+ t%is process 1ill /e used to +easure t%e Supplier,s per#or+ance and 1ill /e a #actor in deter+inin t%e relations%ip level 1it% t%e supplier and in#luence t%e a1ardin o# ne1 /usiness- Scores 1ill also /e used #or Supplier Reconition A1ards- Scorecar* -a#n Cate.or#e$ an* Sub-Cr#ter#a (%e )*R Supplier scorecard %as #our +ain per#or+ance cateories includin *ost2 3ualit$2 Deliver$2 and &nnovation and 4usiness Alin+ent 5oals- 4ased on our strateic oals and o/0ectives2 )*R applies t%e #ollo1in 1ei%ts to t%e per#or+ance cateories: 256 *ost 256 3ualit$ 256 Deliver$ 256 &nnovation and 4usiness Alin+ent 7ac% cateor$ is #urt%er divided into su/-criteria eac% 1it% its o1n 1ei%t: *ost 8 256 - Annual *ost Reduction 6 - 1006 3ualit$ 8 256 8 De#ects per 9illion: 8 1006 Deliver$ 8 256 8 Deliver$ to *o++it Date 8 506 8 :ead (i+es 8 506 &nnovation and 4usiness Alin+ent-8 256 - &nnovation / )P& - Responsiveness - 4usiness Processes - 3ualit$ S$ste+s
Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae 4 !" 11 Please veri#$ on-line t%at t%is is t%e latest revision SCORECARD RA2INGS "or eac% *ateor$2 1e use a 5-point s$ste+2 1%ere 5 is t%e %i%est and 1 is t%e lo1est- Additionall$2 1e %ave color coded and de#ined t%e ratins into 5 status cateories 8 /lue2 reen2 $ello12 a+/er and red- !ur o/0ective is #or our suppliers to ac%ieve and +aintain ;7<cellent= or /etter per#or+ance-
Rat#n. Score Statu$ Score Superior 5-00 4lue Supplier,s per#or+ance is considered ;/est in-class= #or t%is cateor$- 7<cellent 4-00 5reen (%e supplier,s per#or+ance is +eetin or e<ceedin )*R,s per#or+ance tarets- Accepta/le '-00 >ello1 (%e supplier,s per#or+ance2 1%ile /elo1 e<pectations2 is not causin sini#icant /usiness disruption- (%e supplier,s per#or+ance %as so+e de#iciencies and continuous i+prove+ent 1or. is re?uired in order to attain an i+proved ratin- 9arinal 2-00 A+/er (%e supplier,s per#or+ance is de#icient and needs i++ediate per#or+ance i+prove+ent- @naccepta/le 1-00 Red (%e supplier,s per#or+ance %as +a0or de#iciencies t%at are sini#icantl$ i+pactin )*R,s /usiness- Re?uires i++ediate corrective actions to raise per#or+ance to accepta/le levels- Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae 5 !" 11 Please veri#$ on-line t%at t%is is t%e latest revision O0ERALL SCORE A#ter t%e ratins are deter+ined #or su/-criteria2 1e appl$ 1ei%ts accordinl$ to ac%ieve a su/-total A1ei%t < ratin B su/ totalC2 1%ic% is t%en su++ed to o/tain a +ain cateor$ score- (%is process is also applied to +ain cateor$ scores in order to deter+ine t%e total score AD A+ain criteria scores < 1ei%tCC- (%e #ollo1in is an e<a+ple #or illustrative purposes- Main Category Sub-Criteria Weight Actual Performance ating Weighted ating Cost !"# Annual Cost Reduction 100% 12% 5.00 "$%% &$!" 'uality !"# DPM 100% 50 DPM !.00 ($%% $)" *elivery !"# "n #i$e Deli%ery to Co$$it 50% &% !.00 'ead #i$e 50% 5 Days (.00 ($"% $+)" ,nnovation and -usiness Alignment !"# )nno%ation * NP) 12 pts 12 o+ 12 points Responsi%eness 12 pts 12 o+ 12 points ,usiness Processes 1( pts 11 o+ 1( points -uality .yste$s 12 pts / o+ 12 points (! * 10 .$(% &$%)"
Total ($/" Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae 6 !" 11 Please veri#$ on-line t%at t%is is t%e latest revision (%e overall score produced #ro+ t%is process 1ill /e a .e$ #actor in deter+inin t%e level o# t%e relations%ip 1it% t%e supplier APre#erred Supplier2 Approved Supplier2 or @napproved SupplierC and a +a0or #actor in a1ardin o# ne1 /usiness- (%e overall score 1ill place t%e suppliers per#or+ance in one o# t%ree cateories:
430 4 &30: E5cellent Supplier per#or+ance +eets or e<ceeds )*R e<pectations- *onsistent per#or+ance at t%is level o# 1ill allo1 t%e Supplier to /e considered #or )*R,s Pre#erred Supplier :ist- (%ese suppliers are iven pre#erence on an$ ne1 /usiness a1ards co+pared to suppliers in a lo1er cateor$-
630 4 639: Acce)table Supplier per#or+ance is /elo1 e<pectations /ut still 1it%in an accepta/le rane- "urt%er i+prove+ents to /rin per#or+ance levels up to )*R 7<pectations are re?uired- Supplier re+ains an )*R Approved Supplier list2 /ut cannot /e considered #or t%e )*R Pre#erred Supplier list until per#or+ance i+proves- (30 4 !39: Unacce)table Supplier per#or+ance is /elo1 e<pectations and adversel$ i+pactin )*R,s /usiness- Supplier 1ill /e iven ' +ont%s to i+prove per#or+ance to accepta/le levels- &# a#ter ' +ont%s per#or+ance %as not i+proved2 supplier 1ill /e put on a 6 +ont% no ne1 /usiness #reeEe- &# a#ter 9 +ont%s t%e per#or+ance still %as not i+proved to accepta/le levels2 t%e supplier is at ris. o# /ein re+oved #ro+ t%e )*R Approved Supplier :ist- Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae 7 !" 11 Please veri#$ on-line t%at t%is is t%e latest revision SCORECARD CRI2ERIA an* -EASURE-EN2 COST (25%) Sub-Cr#ter#a Unacce)table -ar.#nal Acce)table E5cellent Su)er#or 7ormula Purchase Price Variance (PPV) (100% of total COST Score) 9easures supplier,s cost de#lation $ear over $ear- Supplier,s total $ear over $ear cost de#lation is a reduction o# less than 2.5%. Supplier,s total $ear over $ear cost de#lation is a reduction o# 2-5 % to less than 5%. Supplier,s total $ear over $ear cost de#lation is a reduction o# 5 % to less than 7.5%. Supplier,s total $ear over $ear cost de#lation is a reduction o# 7-5 % to less than 10%. Supplier,s total $ear over $ear cost de#lation is a reduction of 10% or more- *urrent >ear Fei%ted Averae *ost Reduction B A*urrent >ear Price 8 :ast Price Paid Prior >earC G A*urrent >ear Receipts Actual H "orecastC Data Collect#on: Price and #orecast in#or+ation is collected #ro+ Receipts and Pricin )*R 5lo/al Sourcin data/ase 7re8uenc+ o/ Data: Fill /e +easured +ont%l$- Note$: Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae I !" 11 Please veri#$ on-line t%at t%is is t%e latest revision QUALITY (25%) Sub-Cr#ter#a Unacce)table -ar.#nal Acce)table E5cellent Su)er#or 7ormula Qualitye!ecti"e Parts Per #illi$n (PP#) (100% of total QU!"T# Score) 9easures t%e nu+/er o# individual units t%at are de#ective as identi#ied eit%er at t%e point o# asse+/l$ or as a !ut o# 4o< or 7arl$ :i#er "ailures /$ )*R,s Services oraniEation in relation to t%e total nu+/er o# units s%ipped in t%e +ont%- Supplier ac%ieved J1500 DP9 Supplier ac%ieved /et1een 1001 - 1500 DP9 Supplier ac%ieved /et1een 699 - 1000 DP9 Supplier ac%ieved /et1een '00- 700 DP9 Supplier ac%ieved DP9 K'00 DP9 B A(otal "ailed / (otal Supplier @nits S%ippedC G 120002000 Data Collect#on: *urrentl$ data is collected on .e$ suppliers /$ 9anu#acturin Site- (%e )*R Supplier 3ualit$ oraniEation 1ill provide t%is score- 7re8uenc+ o/ Data: Data is su++ariEed in +ont%l$ periods- Provided /$ t%e Supplier 3ualit$ (ea+ on a +ont%l$ /asis- Note$: n/a Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae 9 !" 11 Please veri#$ on-line t%at t%is is t%e latest revision %LIV%&Y (25%) Sub-Cr#ter#a Unacce)table -ar.#nal Acce)table E5cellent Su)er#or 7ormula eli"ery t$ C$''it ate (50% of total $%!"&%'# Score) (%e supplier,s a/ilit$ to deliver product on-ti+e to t%e )*R desinated location- !n-ti+e deliver$ is /ased on t%e oriinal co++it date /$ t%e supplier- K946 on !(D +etrics- 94-956 !(D #ro+ t%e supplier- 96-976 !(D #ro+ t%e supplier- 9I6 !(D #ro+ t%e supplier- 99H6 !(D #ro+ t%e supplier- P! line ite+s received on co++it date/total co++itted receipt line ite+s Data Collect#on: 4u$er receipts data #or direct purc%ases 7re8uenc+ o/ Data: Data is su++ariEed in +ont%l$ periods- Provided /$ t%e /u$ers on a on a +ont%l$ /asis- Note$: Sub-Cr#ter#a Unacce)table -ar.#nal Acce)table E5cellent Su)er#or 7ormula Lea()Ti'e t$ eli"ery (50% of total $%!"&%'# Score) (%e supplier,s a/ilit$ to deliver product a#ter order is placed- J 6 1ee.s 4-6 1ee.s 2-4 1ee.s 2-10 /usiness da$s K or B 1 /usiness da$ *o++itted lead-ti+es #ro+ Supplier #ro+ !rder Receipt to Delivered Product Data Collect#on: 7rom Su))l+ L#ne -ana.ement 2eam 7re8uenc+ o/ Data: Data is su++ariEed on a +ont%l$ /asis Note$: :ead (i+e is #ro+ order to receipt at )*R doc.- Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae 10 !" 11 Please veri#$ on-line t%at t%is is t%e latest revision Inn$"ati$n an( *usiness Ali+n'ent (25%) Sub Cr#ter#a: Inno"at#on an* NPI 4 (! Po#nt$ Po$$#ble Re$)on$e Pro"#*e* b+ 4 Commo*#t+ D#rector 1- Does Supplier initiate (ec%nolo$ discussions to assure alin+ent 1it% )*R Product Road+apL A' pointsC 2- &s Supplier +eetin )*R,s )P& ti+eline re?uire+entsL A' pointsC '- &s Supplier providin ade?uate support #or *RM7 &nitiativesL A'pointsC 4- &s Supplier proactive in /rinin ne1 and innovative ideas on i+provin processesL A' pointsC 9ES NO Comment$ Sub Cr#ter#a: Re$)on$#"ene$$ 4 (! Po#nt$ Po$$#ble Re$)on$e Pro"#*e* b+ 4 S#te SL- : ;u+er -ana.er 1- Does Supplier provide appropriate level o# 7<ecutive enae+entL A4 pointsC 2- Does Supplier provide open co++unication a/out potential N actual ris.sL A4 pointsC '- &s supplier responsive and e<ert all e##orts to +eet c%anes in +aterial re?uire+entsL A4 pointsC 9ES NO Comment$ Inn$"ati$n an( *usiness Ali+n'ent (C$ntinue() Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version Supplier Scorecard Procedure Date: 06/25/2010 497-0469929 Revision: A Pae 11 !" 11 Please veri#$ on-line t%at t%is is t%e latest revision Sub Cr#ter#a: ;u$#ne$$ Proce$$e$ 4 (4 Po#nt$ Po$$#ble Re$)on$e Pro"#*e* b+ 4 S#te SL- : ;u+er -ana.er 1- &s supplier set up and usin t%e )*R iSupplier PortalL A4 pointsC 2- Does supplier la/elin con#or+ to )*R speci#icationsL A' pointsC '- &s Supplier providin P! ac.no1lede+ents and co++it dates in a ti+el$ +annerL A4 pointsC 4- Does t%e supplier invoice and pac.in slips +eet )*R re?uire+entsL A' pointsC 9ES NO Comment$ Sub Cr#ter#a: <ual#t+ S+$tem$ 4 (! Po#nt$ Po$$#ble Re$)on$e Pro"#*e* b+ 4 <ual#t+ -ana.er : S#te Su))l#er <ual#t+ En.#neer 1- Does supplier provide ti+el$ *:*A responsesL A4 pointsC 2- Oas supplier passed t%e )*R Supplier 3ualit$ Audit 1it% J 706 scoreL A4 pointsC '- Does t%e supplier %ave an active *ontinuous &+prove+ent prora+L A4 pointsC 9ES NO Comment$ Copyright 2010, NCR Corporation This document is subject to revision control requirements user should verify latest version