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Book Title, SPX-0000XXXX-v1.0
Title: Supplier Scorecard GuideDocument No.: SPX-00045158Author: Lauren Hall, Ryan CoelhoDepartment: SUPPLY CHAIN MANAGEMENT
Approved Version:Approved By:Approval Date:Current Version:
LEVEL III QMS
Document Approval
Additional Approvals
Version Date Change Summary1 Initial Release.
VERSION HISTORY – Change Summary
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INTENTIONALLY LEFT BLANK – DO NOT DELETE
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SUPPLIER SCORECARD GUIDESpaceX Supply Chain ManagementMarch 2019
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Supplier Scorecard Guide
• Purpose & Benefits• Scope of Scorecard• Functionality & Features• Scorecard Explanation
– Supplier Information– Supplier GPA & Weightings– Supplier Performance & Calculations– Statistics– Appendix Spreadsheet
• Cadence of Scorecard Emails• Data Disputes
– Policy– Process and Points of Contact– Dispute Form
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Purpose & Benefits
• One stop shop– Summarizes Supplier relationship at the executive level – Standardizes Supplier evaluation
• SpaceX and Supplier relationship transparency– Ranks Supplier score against target requirements– Monitors Supplier trend and progress over time– Drives data integrity and accountability
• Empowers Supplier to create robust improvement plans and development activities
• Satisfies customer and industry requirements
Drives SpaceX business award justification
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Scope of Scorecard
• Every supplier location/supplier code will have a single Supplier Scorecard which will encompass all activity with them, regardless of commodity or tier of purchase.
• Monthly scorecard is based on the past 6 months of data.
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Functionality & Features
Functionality• Easy to read, printable PDF, 8.5 x 11 ratio• Historical data of 6 months Features• Supplier and SpaceX contact information• Supplier GPA• Performance scoring• Statistics• Appendix spreadsheets with raw data
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Supplier GPA
Section 2: Supplier Performance
Section 3: Supplier Statistics
Section 1: Supplier Information
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Section 1: Supplier Information
Section BQuality ContactLast Audited Date of last audit completed and uploadedLast Performance Review Date of last review completed and uploadedPayment Terms
Section DSpaceX Contact Information:• Supplier Development Engineer • Primary Buyer
Section C Supplier GPASection D
Section ASupplier Contact Information Supplier Address and Main Contact
Section CSupplier Type:• Flight: Provides flight parts to SpaceX• Non-Flight: Provides non-flight parts to SpaceX (includes R&D, engineering development, machines, tools, etc.)
Quality Certifications: AS9100, ISO 9001 and NADCAP certifications (if applicable)
Section A Section B
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Supplier Overall Grade
What makes up Supplier GPA?Supplier GPA is a weighted GPA, comprised of 75% quality and 25% delivery.Delivery GPA is based OTTP (on time to original promise date), % of PO Lines Acknowledged, and % of PO lines acknowledged within 72 hoursQuality GPA is an aggregate of Issues, SRIs, Containments, Source Inspection, and eCerts.
Example:Supplier GPA = 75%(Quality) + 25%(Delivery)Supplier GPA = 75%(4.00) + 25%(2.00)Supplier GPA = 3.50
Letter Grade Scale
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Section 2: Supplier PerformanceSection A: Performance Score
Section A Section B Section C
*These scores are only factored in if applicable to Supplier.
Section B: Trend Line Top number shows of PO lines closed during that month, as a reference. Trend line shows score for the last 6 months, where each month’s score is the aggregate of that month + previous 5 months.
Section C: Top Impact Parts Top three parts negatively impacting each score, including units in which that score is measured.
Score Type Definition
Impact to
Overall Grade
Issue ScoreVendor caused nonconformance
escapes to SpaceX26.3%
SRI ScoreVendor caused nonconformance
caught prior to shipment15%
Containment Score
Parts need to be contained at SpaceX due to vendor caused
issue
7.5%
Source Inspect Score
Hard or soft fails caught by SpaceX inspectors
at Supplier22.5%*
eCert ScoreDocumentation
nonconformance prior to shipment
3.75%*
OTTP Score On Time to Original Promise Date 20%
Acknowledgment % Score
Acknowledgment of Purchase Order Lines 2.5%
Acknowledgment within 3 Days Score
Acknowledgment of Purchase Order Lines
within 3 days2.5%
Detailed breakdowns of each calculation is shown on following slides.
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Dynamic Weighting – Quality Score
In cases where Suppliers are not enabled for eCerts or Source Inspection, those categories are will be excluded and their weights are redistributed.
No SourceNo eCerts or SourceAll Categories No eCerts
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Calculations – Issue and SRI Score
• Vendor caused issues only– SRIs that do not result in a vendor caused issue are not included
• Example:– Issues = 196 defective / 399 received 51% Issue score– SRI = 37 defective / 399 received 91% SRI score
Note: Quantities in yield formula are based on individual piece parts, not on part number or PO line basis. Units of measure are taken into consideration.
59.8%
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Calculations – Containment Score• PO line basis, 6 month average• For each month:
– Suppliers will receive a score of 0 if the PO line was closed that month, regardless of when containment was initiated.
– Containments are linked to PO lines through vendor caused issue tickets
• Excludes canceled containments• Example:
– 4 mo. (100%) + 2 mo. (0%) = 67% Containment Score for June
59.8%
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Calculations – Source Inspection Score• PO line basis, 6 month summary• For each PO line Source Inspected in past 6 months:
– No fails = 1 point– Soft fail (and no hard fails) = 0.5 points– Any hard fails = 0 points
• Sum up all points and divide by total # of PO lines inspected• Example:
– 2.5 points / 5 PO lines = 50% Source Inspection score
59.8%
Note: We do not count hard/soft fails that are SpaceX-caused against Supplier in Scorecard. Examples: SpaceX sold material to supplier but did not provide material certifications, kitted material to a Work Order but left 10a/10b on PO line, or a problem with PO.
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Calculations – eCert Score• PO line basis, 6 month summary• For each PO line with an eCert submitted in past 6 months:
– All passing = 1 point– Any rejections = 0 points
• Example:– 2 points / 5 PO lines = 40% eCert Score
59.8%
Note: We do not count eCert rejections that are SpaceX-caused against Supplier in Scorecard. Examples: duplicate submission of eCert, internal trace profile issues.
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50%
Calculations – OTTP Score• PO line basis, 6 month summary• For each PO line closed in the past 6 months:
– Delivered on or before Original Promise Date (3 day grace period) = 1 point
– Delivered within 7 days of PO Release Date = 1 point– Delivered after Original Promise Date = 0 points– Original Promise Date Missing = 0 points
• Example:– 2 on time / 4 PO lines = 50% OTTP Score
Example PO Line PO Release Date
Original Promise Date
PO Line Close Date
OTTP Score
PO Line is closed before Original Promise Date 785767 2 6/11/2018 7/11/2018 6/28/2018 1PO Line is closed more than 3 days after Original Promise Date 582578 1 7/1/2018 8/5/2018 8/9/2018 0PO Line Closed within 7 days of Release date 738641 12 10/4/2018 NULL 10/9/2018 1Original Promise Date missing 770505 1 4/21/2018 NULL 6/15/2018 0
2
75%
25%
50.0%
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Calculations – PO Acknowledgment
• PO line basis, 6 month summary • Acknowledged %: For each PO line released in the past 6 months:
– Acknowledged by vendor = 1 point– Not acknowledged by vendor = 0 point
• Acknowledged within 3 days: For each PO line released in the past 6 months:– Acknowledged within 3 days by vendor = 1 point– Not acknowledged within 3 days by vendor = 0 point
• Example:– 3 acknowledged / 4 PO lines = 75% Acknowledged Score– 1 acknowledged within three days/ 4 PO lines = 25% 3 Day
Acknowledgement Score
PO Line Release Date Acknowledged % Score
Acknowledged within 3 days Score
785767 2 6/11/2018 1 1582578 1 7/1/2016 1 0738641 12 10/4/2018 1 0770505 1 4/21/2017 0 0
3 1
50%
75%
25%
50.0%
Note: Only PO lines released after the new scorecard launch will be included in the calculations
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Calculation – Overall GPA• Quality = .35(.51) + .20(.91)+.1(0.67)+.3(.5)+.05(.4) • Quality = 59.8% F 0.0 GPA
• Delivery = .80(.50) + .10(.75) + .10(.25) • Delivery = 50% F 0.0 GPA
• Supplier GPA = .75(Quality GPA) + .25(Delivery GPA)• Supplier GPA = .75(0.0) + .25(0.0) = 0.0 GPA F
F0.0
F F
59.8%
75%
25%
50%
50.0%
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Section 3: Supplier Statistics
Section B: Top 3 Spend PartsList view of top 3 part numbers with greatest spend during past 6 months.
Section C: Corrective ActionsFIX tickets are managed by SpaceX, and are 1 method of tracking corrective actions for Suppliers.
Open FIX tickets: Count of open FIX tickets, which may have multiple actions associated.
Closed FIX tickets: Total FIX tickets closed (all time)
Section A: 6 Month Order HistorySpend: Total spend from POs created in that month.
Purchase Orders: Number of POs created in that month.
Distinct Part Count: Number of unique part numbers from POs created in that month
Section ASection B
Section C
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Appendix Spreadsheets• Separate attachment of raw data driving each score
– Each attachment should allow you to recreate the scores you see on scorecard, using the calculations outlined in this guide.
• Data captures the last 6 months• Spreadsheets included:
– Issues and SRIs – although different scores, these are based on the same data set, so the data is combined. SRI Flag column tells you if it’s an SRI or not. The top row “Receipt Qty” summarizes count of all parts received over past 6 months, to be used as the denominator.
– Containment – shows a list of any containments in the past 6 months. If there are multiple “PO lines close dates” falling in the same month, that month is given a score of 0. October will get the same score whether there is 1 containment or 5 containments in October.
– Source Inspection – shows all PO lines inspected in past 6 months. Used to recreate Source Inspection score.
– Source Inspection Detailed – This is additional detail that is more granular that “Source Inspection”. Shows all Source Inspection events in the last 6 months, plus rejection codes. This data can be used by Supplier to analyze issues and performance trends.
– eCerts – shows all PO lines with eCert submitted in past 6 months.– OTTP – shows all PO lines closed within last 6 months. (If a PO line has only been partially
delivered, it will not be in the data and therefore not included in scorecard.)– Acknowledgement – Shows all PO Lines released within the last 6 months.– Corrective actions – these are not part of score calculations and is reference only.
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Appendix Spreadsheet Examples
Issues / SRIs
OTTP (on time to original promise date)
Source Inspection
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Cadence of Scorecard Delivery
• Suppliers receive scorecard monthly by default.
• To stop receiving your scorecard, email the SpaceX contact listed at the top of your scorecard.
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Policy Around Data Changes
• If you disagree with a score, use the appendix data provided to investigate. You should be able to recreate the score using the calculations outlined in this guide.
• What is considered a valid dispute?– If you believe it was caused by SpaceX– Examples:
• Internal SpaceX handling• Miscommunication caused by SpaceX• Original promise date is incorrect or within agreed upon lead time
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Dispute Process
• The dispute form is attached to your Scorecard email. Fill out the form and email it to the following points of contact:– Concerns regarding Quality scores
• Supplier Development Engineer– Concerns regarding OTTP score
• Supplier Performance Coordinator or Buyer
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Dispute FormA spreadsheet with two tabs is sent out with the Scorecard email. One tab is for Delivery disputes while the other is for Quality disputes. Please provide detailed explanation of what you are contesting and why you believe this was a SpaceX caused problem.
If you are disputing an eCert, please provide the eCert ID if available.
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Thank you!
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APPENDIX
SpaceX Proprietary – Use or disclosure of this information is subject to SpaceX approval
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Calculation Nuances
• GPA calculation– Quality Score and Delivery score are converted to a GPA before
being averaged to get the overall Supplier GPA.• Calculation is: .75 (4.0) + .25 (3.0) = 3.75 B• Calculation is not: .75 (91%) + .25 (89%) = 90.5 A
• Issues and SRIs– If yield is negative, we round to 0%. This happens (rarely) when
more parts are written on issue than are received.• Since we are looking at a 6 month period, the above situation is rare.
– Units are accounted for in calculations. If we receive both “feet” and “each” units from a Supplier, we calculate separate yield scores for each unit.
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Calculation Nuances
•
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Issues = 33 defective / 579 received = 94.3% Issue scoreSRI = 16 defective / 579 received = 97.1% SRI score
Calculation Nuances
• Issue and SRI – Unit of Measure: background data will be provided in the following format:– For each Unit of Measure (UOM) there will be one “Receipt Qty” row
that summarizes all quantity received in the last 6 months– In the “SRI Flag” column, Issues marked “SRI” will count toward the SRI
score and Issues marked “Non-SRI” will count towards the Issue Score.Example:
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Calculation Nuances
• Source Inspection– Score is calculated on a PO line basis. This is because for every
failing Source Inspection we must have a corresponding passing inspection, meaning using % defective would be inaccurate.
– We use the date of the latest Source Inspection.– A PO line may be passing in 1 month’s scorecard, but failing in a
later month’s scorecard. Example:• January scorecard shows this PO line as passing = 1 point• March scorecard shows this PO line as failing = 0 points
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Calculation Nuances
• eCerts– Score is calculated on a PO line basis. This is because for every
failing eCert we must have a corresponding passing eCert, meaning using % defective would be inaccurate.
– We use the date of the latest eCert submission.– A PO line may be passing in 1 month’s scorecard, but failing in a
later month’s scorecard. Example:• January scorecard shows this PO line as passing = 1 point• March scorecard shows this PO line as failing = 0 points
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Calculation Nuances
• Containment– Containment score is an average of 6 numbers, a score for each of the
past 6 months.• Each month is all or nothing. Whether there is 1 containment or 10
containments, that month gets a 0%.– The month in which the PO line is closed is the month that will get a 0 if
there is a containment. This means the metric is lagging. Example:• PO line is closed in January• A containment is initiated in April with that PO line in scope
January score = 100% April score = 83%
Even though containment was initiated in April, the score for January was affected, since that is when the PO line was closed.