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Code CD-00030-EN
Previous Code CD-030-EN
Version 4
Document type EN\Corporate Document
Status
Abstract:
This document describes the supplier rating for all divisions at TKT-Presta.
This document is an English translation from the German original. In case of any translation concern
please refer to the original German version for validity.
The copyright of this document and all supplements remain to TKT-Presta. It is strictly prohibited to make copy
of it and to inform or make accessible to a third party without a written authorization from TKT-Presta.
Documents to apply
2 Introduction
2.1 Objective
In conjunction with its suppliers, ThyssenKrupp Presta (hereinafter TKT-Presta) is continuously
striving to optimize its material and information flow.
The supplier rating serves as a controlling tool for both the supplier and TKT Presta, and thus
helps to continually improve and further develop customer-supplier relationships.
The terms, consequences, actions, responsibilities, formula and basic information for the
supplier rating are explained in this manual. Any specific questions should be addressed to the
responsible Division Purchasing department of TKT-Presta.
The magnifier symbol in the rating of the Supplier Portal is used to access the detail view of
the rating. Clicking on the glasses symbol displays the detail view of a specific material or the
total view of all materials. The detail views can only be called up for those locations for which the
data are automatically determined in SAP.
2.5 Responsibilities
Process definition of the Supplier Escalation Management
The responsible quality department in the division controls and carries out a monthly plausibility
check of the supplier rating. The responsible quality department organises and coordinates the
monthly Supplier Escalation Management Meeting, with number of participants
In case of a grading in escalation level 1-3 the central purchasing manager has to inform the
commodity group buyer or rather the purchasing organisation of the concerned divisions.
Table 3: Responsibilities
The purchase controlling at TKT-Presta Eschen is responsible for data management in SAP.
71 - 91 % B 71 - 91 points
The Performing auditor at TKT-Presta Eschen is responsible for data management in SAP.
The Central Quality has to be informed by the TKT-Presta Group members about supplier audit
results (if available)
For example, four deliveries from a supplier are received at a TKT Presta Group location during
December. A release was effected for one of these deliveries, a deviation for another two, and a
return delivery for the fourth. The corresponding score is calculated using the ratings from Table
6 and the following formula:
Average= (1*100+2*80+1*1)/4=65.25
Because only whole numbers are displayed in the rating, this result is rounded up or down.
In the case of this example, the corresponding score is 65 points.
4.2 ppm
ppm is the abbreviation for parts per million. The number of defective parts of all deliveries is
extrapolated to one million parts
(number of defective components*1000000 /total delivery volume).
The ppm-value determines the rating for the criterion ppm. There is a reverted relation between
point rating of the criterion and the ppm-value in the range of 0 - 99 ppm. (The ppm-value and
the rating of the criterion added without units of measurement complement one another to the
value 100.) 0 ppm determine 100 points and 99 ppm determine 1 point. More than 99 ppm are
also evaluated with 1 point (table 7). Exceeding of the maximum ppm-value leads to a change of
the supplier status (according to table 14).
The four deliveries from the preceding example refer to a total delivery volume of 20,000 parts;
the number of defective parts is 35. The PPM number is calculated as follows:
PPM = (35*1000000)/20000= 1750
In this example, the supplier has a PPM number of 1750 and receives one point in accordance
with the table below.
1 - 99 ppm 99 - 1 points
<1% 1 point
The monthly rating is based on the average (arithmetic mean) of all Up-to-schedule shipping
assessments in the period. Each delivery position is evaluated in respect of the quantity on time
in proportion to the total quantity of the delivery:
Background of the assessment is the receipt of goods at TKT-Presta and the corresponding
delivery scheduling. When pickup dates are displayed in the schedule, transit times are added for
the calculation in case of variable transit times with respective tolerances. Stipulations which
have not been confirmed with a new delivery schedule are not taken into account. They are also
not subject to subsequent reclamations. Tolerances in over shipment, early deliveries and late
deliveries can be determined by TKT-Presta for different reasons. In case of an over shipment,
the tolerated quantity is subtracted from the total quantity in the formula above.
The described automatic rating has not yet been introduced in all TKT-Presta plants. At plants
where evaluation is performed manually, each delivery is evaluated according to the following
scheme (Table 9):
Rating algorithm
The rating consists of the inbound process and communication behaviour. The possible maximum score is
100, the minimum is 1. For every failure points will be subtracted:
* Incorrect EDI content can cause wrong MRP results in our SAP.
** Damaged or wrong packages may have negative influence on product quality.
The total deduction of points complies with the number and status of the logistics complaints.
The complaints will be proofed by failure location EDI, packaging, delivery papers and
labelling.
5 points will be subtracted from every failure location if the status corresponds to one of the
entries in the following table:
*** If a supplier should only be informed with request for remedy the defects and no further
action are necessary the complaint obtains the status Hint complaint. This type of complaint
has no influence on the evaluation.
With communication behaviour, the supplier will be evaluated due to the reply within the given
time. For logistics complaints the given time for a 8D report is 24 hours. Every missed reply
within the given time causes a subtraction of 5 points.
With communication behaviour on violations, the supplier will be evaluated due to the reply on a
violation. The target is the last calendar day of the month after the complaints month. If the reply
is missing the total possible deduction of 10 points will be applied.
Based on the number of violations in regards to the criteria of the supplier rating an automated
status information in form of a traffic light symbol is shown in SAP. The necessary actions and
escalations level are defined in the escalation management meeting under consideration of the
implemented traffic light symbol. This may include actions for Violation of trust, field action at the
customer, line shutdowns and indoor breakdowns.
Quality department division Overview and analysis of the critical suppliers, detailed
information
of the supplier quality performance (8D, photos, sample
parts, and so on.)
Concerned commodity group Supplier status, list of the financial critical suppliers
buyer / purchase manager of (Liste der
the plant coordination
wackeligen Lieferanten)
Table 15: Participant and their responsibilities in the escalation management meeting
If TKT-Presta discovers a violation of trust of a supplier, will this one be graded in an escalation
level (ESC1-3).
A violation of trust will be caused, if a supplier is not following the notification requirements. In
case of changes or not conform parts, the supplier is required to notify TKT-Presta and ask for
acceptance with a Request for Engineering Approval (Antrag auf technische Freigabe=ATF).
Examples:
Manufacturing or equipment process change (including tooling) or location change
Component or material change or substitution
Subcontractor or vendor change
non-compliance of the QSV or rather the specification in the supplier portal
If the OEM has to carry out field actions because of variations of vendor parts, the supplier will be
graded by a committee decision in an escalation level (ESC1-3).
Because of a line shutdown caused by the supplier, the supplier will be graded by a committee
decision in an escalation level (ESC1-3).
Because of unacceptable number of violations within 6 months, the supplier will be graded by a
committee decision in an escalation level (ESC1-3).
7 Records retention
8 References
See process (Income):Supplier rating and supplier development.