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Supplier Scorecard Guidelines
Revision Date: 1 September 2004
Approved
(Signature on file)
John Saliture, DirectorSupplier Quality & Technical
Performance
Integrated Systems Sector
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General Information
As part of our efforts to more effectively rate supplier
performance, Northrop Grumman Integrated Systemshas refined the
Supplier Scorecard Process. The Scorecard is used to support our
commodity managementand strategic sourcing objectives, and is also
used as the main criteria for our Platinum Source
Certificationprogram. More importantly, we believe the Scorecards
facilitate stronger communications between
Northrop Grumman and our production supplier team members.
Production suppliers who supply material that is ultimately
delivered to our customer will receive aScorecard. Manufacturers
and distributors will receive a Scorecard. Special processors,
service suppliers,and tooling suppliers will not receive a
Scorecard.
Supplier Scorecards are posted quarterly on the Northrop Grumman
OASIS website located athttps://oasis.northgrum.com/under
MyOASIS.
Northrop Grumman Team Members
Both Quality and Procurement review and have input into your
Scorecard.
Each supplier has been assigned a Supplier Quality and Technical
Performance (SQ&TP) Process
Manager. The Process Manager insures accuracy of the Quality
Profile and inputs the Process Health/Lean/ Six Sigma rating.
Some suppliers receive purchase orders from multiple sites
within the Integrated Systems sector andtherefore have various
buyers assigned to them. The buyers are responsible to review and
correct theDelivery metrics prior to publication. The buyer who has
the most open purchase order dollars has beenidentified as the lead
buyer. The lead buyer is responsible for loading the Customer
Satisfaction element ofthe Scorecard.
Access to MyOASIS
A user ID and password are required to access Supplier
Scorecards within MyOASIS. If your companydoes not have a user ID
and password, please contact one of these individuals for help:
Suzette SakazakiInternet Supplier Programs(310)
[email protected]
Lisa TerryIntegrated Delivery Team(310)
[email protected]
Lori NewSupplier Quality Administration
(310) [email protected]
For MyOASIS login problems, please call Suzette Sakazaki.
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Scorecard Elements
Your Supplier Scorecard is made up of the following elements.
These elements have assigned point valuesand when combined together
comprise your Scorecard rating.
Objective Elements
Quality (ref: Figure 2) Late Delivery
o Material received more than 7 days late based on the
negotiated purchase orderdate within the last 6 months.
Team Assessment Elementso Customer Satisfaction
Responsiveness Responds quickly and thoroughly to requests,
written and verbal
o Alwayso Usually, requires an occasional follow upo Seldom,
typically requires multiple follow up
Able to Accommodate Changes to Requirements with Reasonable Cost
andSchedule Impacts
o Yes, typically minimal impacto Accommodating but needs follow
up and extra effort to define impactso Accommodates changes, but
cost and schedule impacts seem
excessiveOversight
Oversight Required in the Areas of Quality, Technical and
DeliveryRequirements
o No Oversight Requiredo Minimal Oversight Requiredo Regular
Oversight Requiredo Excessive Oversight Required
Management
Displays Technical and Management Expertise Required to Identify
andImplement Innovative Solutions to Issues
o Proposed solutions are accurate, concise and insightful,
addressing allissues at hand
o Average, most solutions are acceptable. Some require further
work.o Unable to consistently offer effective solutions
o Process Health/ Lean & Six SigmaProcess Health
Mature Planning and Schedule Management Processeso Supplier has
proven Production Control and Planning systems that
provides sufficient methods to provide parts to contract reqtso
Suppliers Production Control and Planning systems
inconsistently
provides sufficient methods to provide parts to contract reqtso
Supplier has no Production Control system in place or is not used
to
monitor shop load reqts and the Planning system is non-existent
ordeficient
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Lean & Six Sigma
Embraces Continuous Process Improvement with Tools such as Lean
and SixSigma
o Employees are Trained and Knowledgeableo
Evidence of some Ongoing Activities or Events that Generate
CostReductions and/or Lead Time Improvementso Aggressively
Practiced Throughout the Enterprise. Continuous
Improvement of Costs and Lead Times
Feedback
Any questions regarding your Scorecard should be directed to
your Quality Process Manager or yourBuyer.
Supplier Scorecard Format (Figure 1)
Quality Profile
Rating
(See Figure 2)
Late Delivery(last 6 months)
(PO Date
> 7 days)
Customer
Satisfaction
Process
Health/Lean/
Six Sigma
Actual
100
90
80
77
70
67
57
54
47
44
34
30
20
10
0
Points
50
45
40
39
35
34
29
27
24
22
17
15
10
5
0
Actual
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
> 9%
Points
30
27
24
21
18
15
12
9
6
3
0
Points
10
9
8
7
6
5
4
3
2
1
0
Points
10
9
8
7
6
5
4
3
2
1
0
Supplier ScorecardRating
Blue 91-100
Green 75-90
Yellow 51-74
Red 0-50
Scorecard Formula
(Quality Score) + (Late Delivery Score) + (Customer Satisfaction
score) + (Process Health Score) =Overall Score
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Quality Profile Rating (Figure 2)
=
Supplier Quality ProfileQADRRs(30% wt)0 (30)1 (20)2 (10)3+
(0)
Hardware AcceptanceRating (70% wt)
100 (70)99 (47)
97 - 98 (24)0 - 96 (0)
100 = Blue67 to 99 = Green35 to 66 = Yellow
< 35 = Red
Hardware Acceptance Rating: 1 (Quantity of pieces rejected
divided by the quantity of pieces
received) x 100 based on previous 12 months of supplier
history.
QADRRs: Three (3) months of closed QADRRs and all QADRRs with
open Corrective Action.
Quality System disapproval, appearing in a GIDEP alert or
advisory, or a disclosure of
nonconforming hardware that has been delivered to a Northrop
Grumman customer within the last
12 months will result in an automatic RED Quality Profile rating
of a one (1).
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Supplier Scorecard
3rd Qtr 2004
Supplier Number: 123456
Supplier Name: XYZ CompanyMfg./Dist. Address: 123 South St.
Orange, NJ 00000
Buyer Name Process Manager Platinum Source IS Programs
ACS: Parker, G Williams, B Yes E-2CAEW: Quail, P BQM-34AGS:
Thomas, C JSTARS
Scorecard Ratings
Quality
Late Delivery
Customer Satisfaction
Process Health/ Lean
Total
50
30
10
77
10
Blue = 91 100; Green = 75 90; Yellow = 51 74; Red = 0 - 50
Notes:IS - Integrated Systems
ACS - Air Combat Systems
AEW/EWS - Airborne Early Warning/
Electronic Warfare Systems
AGS/ BMS - Airborne Ground Surveillance/
Battle Management Systems
27
10
10
30
Available Pts. Earned Pts.
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