The Supplier Quality & Performance Scorecard System at LESER - illustrated in 8 charts

In the fourth and last part of this mini-series, we introduce you to the LESER Scorecard System.

LESER attaches the greatest importance to a constantly up-to-date and transparent evaluation of its suppliers’ performance. A globally installed scorecard system is used to provide a daily updated and uniform supplier assessment with regard to supplier quality, on-time delivery, and sustainability.

Presentation of the overall performance of a supplier in the casting material group

Chart 01 shows the overall performance of suppliers in the Casting Material Group. This scorecard provides an overview of the key performance indicators for a specific supplier or the entire material group for one or more manufacturing sites, as well as how these have developed over the past 12 months and up to 3 financial years. The scorecard, showing only their specific data, is regularly shared and evaluated with the individual supplier.

The Supplier Quality Performance (SQP) team continuously evaluates, among other things, the relevant quality indicators of all suppliers in the portfolio to be able to react as quickly as possible with appropriate measures if necessary. The following examples provide an insight into the measurements used.

Performance of serial deliveries

Chart 02 is an illustration of the supplier's overall quality performance rating at the order line level. The evaluation shows a generally positive quality trend (positive trend of 0.2%). The target is a maximum complaint rate of 1.5%. A new target will be set for the new financial year.

Evaluation at the characteristic level for recorded defect characteristics

Chart 03 shows the evaluation of recorded discrepancies for all suppliers by type. The most common errors are related to providing the required 3.1/3.2 material quality certificates. To counteract these errors, a detailed evaluation to identify specific suppliers is carried out in order to initiate targeted corrective actions.

Evaluation of 5 suppliers with the highest number of non-conformities

The top 5 suppliers with the highest number of non-conformities over the last three months are shown in Chart 04. The prioritized suppliers, identified here by letters A-E, will be contacted. They will be asked to demonstrate reliable and sustainable corrective actions through the regular complaint process.

Performance of first sample delivery

LESER strives for a high First Time Right (FTR) performance. This is already monitored in detail in the first sample process and enables process-safe and, as far as possible, fault-free series delivery. The continuous improvement of this performance is achieved by monitoring the first sample key figures and deriving necessary and preventive corrective measures in combination with the experience of the SQP team. In the event of relevant deviations from the LESER order specification, initial samples are resolutely rejected and resubmitted after corrective measures have been initiated.

An example evaluation of the initial sample rate is shown in Chart 05. The approval rate is 84 %, marginal deviations were found in 8 % of the initial samples, and the rejection rate is 8 %. The deliveries of initial samples are shown and defect characteristics are displayed.

Supplier deviation characteristic through the whole production cycle (First Pass Yield - Supplier)

The most recent metric in the SQP is the First Pass Yield - Supplier (FPY) scorecard.

From receiving to the assembled safety valve, this metric records and evaluates every process failure on every single component.

Conclusion on the material numbers

he detailed evaluation of the FPY in Chart 07 allows conclusions to be drawn about the material numbers with the highest frequency of process errors.

The three suppliers with the highest number of registered process errors are always given the highest priority. The top 3 material numbers are identified and communicated to the supplier. Corrective actions are requested. Once initiated, they are checked in the next delivery batch. A feedback message is sent to the supplier. Then the next material numbers are identified and the process of correcting the errors starts again.

Sustainability plays an important role

In addition to on-time delivery and quality, sustainability plays an important role in assessing supplier performance. This is discussed in more detail below in Chart 08 on Sustainability.

Chart 08 shows a supplier's current score on sustainability issues. The red dotted line running vertically through each graph represents the LESER minimum requirements.

Scores below these requirements, to the left of the line, are immediately discussed with suppliers to initiate effective improvements.

Here you will find the links to the previous articles in this series LESER Supplier Quality Management

01 Topic: The LESER Supplier Quality Performance Team in global action

https://www.dhirubhai.net/feed/update/urn:li:activity:7084861560854073344

02 Topic: Qualifying and developing suppliers - a key success factor for LESER

https://www.dhirubhai.net/feed/update/urn:li:activity:7097945912794042369

03 Topic: The challenges of incoming goods inspection and certification

https://www.dhirubhai.net/feed/update/urn:li:activity:7138521488617385985