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Mazda Service SupplierMazda Service Supplier Score Card- Delivery Performance
January 2010
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Outline
Why a Score Card?
What is the Delivery Performance Score Card?Card?
What does it look like?
When will it launch?
How do I access the Score Card?How do I access the Score Card?
Who can I contact about the Score Card?
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Why a Score Card?
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Vision and Intent
- Build upon existing tools and use available data to measure & efficiently report on a supplier’s service parts performance.- Use results to enable process improvements between
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MNAO & our service parts suppliers.- Help Mazda dealers improve customer service retention & loyalty KPIs- Recognize consistently high performing service part suppliers, and work towards corrective action at MNAO and the supplier to resolve concerns.- Consider supplier performance during future sourcing decisions.
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Supplier Score Card CategoriesService parts suppliers will be measured in categories that affect our customer’s overall after-sale experience:
Categories
p1. Delivery Performance2. Warranty Performance3 Quality
Driving the development process
3. Quality4. Transportation Compliance5. Support
Future Enhancements / See Appendix A
Each category will have related metrics displayed on a Supplier Score Card. The Score Card is accessible by supplier via the web on the Mazda Supplier Extranetweb on the Mazda Supplier Extranet.
- Delivery Performance data will drive the overall Score Card process
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process.
Why Measure Delivery Performance to Mazda?Performance to Mazda?
A switch to a proactive approach & culture.Delivery issues that can be solved proactively:Delivery issues that can be solved proactively: 1. Early & Late service parts shipments2. ASN Accuracy, Discrepancies & Timeliness3. Past Dues, Aging & Recovery
Other positive impacts for Mazda and its dealers:1 Dealer fill rates1. Dealer fill rates2. Backorders & recovery timing 3. Inventory investment and turns 4. PDC capacity and PDC variable costs5. Transportation costs 6. Cash flow
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7. DRP Planning
Why Measure Delivery Performance to Mazda?Performance to Mazda?
Some positive impacts to the service parts supplier:1 A location on the web to access Mazda order information1. A location on the web to access Mazda order information
– anytime, anyone (with secure access), anywhere within the supplier’s organization.
2 Various reports pertaining to order status and2. Various reports pertaining to order status and performance to Mazda.
3. Consistent means to measure performance across all supplierssuppliers.
4. Validation tool for corrective actions taken.5. Everyone at Mazda and the supplier on the same page
ith d t fwith regard to performance.6. Availability of trend data. 7 A known standing when it comes to the future business
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7. A known standing when it comes to the future business requirements of Mazda.
What is the Delivery Performance Score Card?Performance Score Card?
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Critical Definitions & Measurement DatesMeasurement Dates
Mazda measures service parts supplier delivery performance (in pieces) based on two key dates:performance (in pieces) based on two key dates:
1. the PO Line Due Date 2. the supplier ASN Date
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The PO Line Due Date is calculated as follows:
PO Issue Date + Supplier Lead Time (from the Mazda Blanket PO)
The supplier’s ASN Date should simply equal the shipment date and is the date the ASN transmits toshipment date and is the date the ASN transmits to Mazda.
It is the supplier’s responsibility to transmit proper ASN
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It is the supplier s responsibility to transmit proper ASN data to Mazda on the actual shipment date.
Key Categories and Weights of Delivery Performance
Delivery Category Max Points (Weight)1 On-Time Performance 70 Points1. On Time Performance 70 Points2. Past Due Performance 20 Points3. ASN Performance 10 Points
Using the two key dates, Mazda categorizes Delivery Performance into the three primary categories listed above.Actual performance percentages are calculated and converted toActual performance percentages are calculated and converted to points on a 100-point scale. Maximum point totals (weights) assigned to each category are indicated above (70/20/10).Each category’s points are summed to determine the supplier’s Delivery Performance. Mazda will assign a Delivery Performance stop light status (RED / YELLOWYELLOW // GREEN) th h t th S C d
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(RED / YELLOW YELLOW // GREEN) throughout the Score Card.
The Delivery Performance ScorePerformance ScoreThe scores in the areas of On-Time, Past Due & ASN performance are summed to calculate the Delivery Performance Score.yIt is Mazda’s expectation that all service parts suppliers will maintain a minimum Delivery Performance Score of 90 points.A t li ht t t ill b li d t i di id l t i (O TiA stop light status will be applied to individual categories (On-Time, Past Due, & ASN Performance) as well as the overall Delivery Performance.
Delivery Performance will be routinely communicated to the supplier’s appropriate account managers, contacts and operational executives.
Delivery Performance status will be assigned according to the matrix below.
Delivery Performance Score Status (Required Corrective Action)90-100 points GREEN (No Action)
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p ( )70-89 points YELLOW (Self Review)< 70 points RED (Formal Corrective Action)
Definition of On-Time Performance to MazdaPerformance to Mazda
A service parts shipment to Mazda is considered On-Timewhen its ASN Date is received by Mazda ±7 calendar days of y ythe PO Line Due Date.If the ASN is received more than 7 days before the PO Line Due Date, then the shipment is considered Early, and not On-ue a e, e e s p e s co s de ed a y, a d o OTime. If the ASN is received more than 7 days later then the PO Line Due Date then the shipment is considered Late and notLine Due Date, then the shipment is considered Late, and not On-Time. Mazda will display the metrics within the standard (±7 days) and the metrics outside the standard (Early or Late)and the metrics outside the standard (Early or Late). The “±7 day grace period” is subject to change as we evaluate and benchmark our position versus our competitors and within the industry overall
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and within the industry overall.
On-Time Performance Scoring & ScalingScoring & Scaling
Sample Scenario:5 000 i f i t5,000 pieces of service parts are due in the month “as of” the date indicated.
4 0 i ASN’d i hi
On-Time Percentage
Delivery Points Awarded
98% to 100% 70 points4,750 pieces were ASN’d within ± 7 days of the PO Due Date (On-Time = 95% = 63 pts).
98% to 100% 70 points95% to 97.9% 63 points92% to 94.9% 56 points
200 pieces were ASN’d 8 days or more prior to the PO Due Date (Early = 4%).
90% to 91.9% 49 points85% - 89.9% 42 points
< 85% 0 points50 pieces were ASN’d 8 days or more after the PO Due Date (Late = 1%).
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Definition of Past Due Performance to MazdaPerformance to Mazda
A service parts shipment to Mazda is considered Past Due when it is more than 7 days past the PO Line Due Date at thewhen it is more than 7 days past the PO Line Due Date at the time the ASN is created,
or when it is more than 7 days past the PO Due Date and th i ASN t llthere is no ASN at all.
Mazda measures a service parts supplier’s Past Due Performance based on their ability to minimize past due y pshipment pieces greater than 21 days old.
Mazda will display the supplier’s performance within standard (<21 Days) and outside the standard (>21 Days)(<21 Days) and outside the standard (>21 Days).
The “21 days past due period” is subject to change as we evaluate and benchmark our position versus our competitors
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and within the industry overall.
Past Due Scaling & ScoringScoring
Sample Scenario:
Per the “as of date” thePer the as of date the supplier has 1,000 service parts pieces Past Due (more than 7 days past the PO
Past Due > 21 Days %
Delivery Points Awarded
2% 20 i ta days pas e OSupplier Due Date).975 pieces of the total Past Due pieces are less than 21
< 2% 20 points2% to 4.9% 18 points
5% to 9.9% 14 pointsDue pieces are less than 21 Days Past Due (97.5%).25 pieces of the total Past Due pieces are more than
5% to 9.9% 14 points
10% to 20% 12 points
> 20% 0 pointsDue pieces are more than 21 Days Past Due (Past Due > 21 Days = 2.5% = 18 points).
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p )
Definition of ASN Performance to MazdaPerformance to Mazda
Mazda measures a service parts supplier’s ASN Performance by calculating ASN Accuracy which is thePerformance by calculating ASN Accuracy, which is the number of error-free ASN lines transmitted to Mazda versus the total ASN lines actually received.
Mazda will display the metrics for ASNs within the standard (error-free) and the metrics outside the standard (those that required maintenance or repair bystandard (those that required maintenance or repair by Mazda).
Mazda will also display “No ASN” occurrences where the ASN had to be input by Mazda.
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ASN Performance Scoring & ScalingScoring & Scaling
Sample Scenario:
P th “ f d t ” th liPer the “as of date” the supplier made 6 service shipments to Mazda.
E h hi h d 12 ASN
ASN Accuracy Percentage
Delivery Points Awarded
Each shipment had 12 ASN lines (72 total ASN lines).
69 of the 72 ASN lines were
98% to 100% 10 points95% to 97.9% 9 points90% to 94 9% 7 pointsreceived clear (Error-free ASNs
= 95.9% = 9 pts).
1 line contained an error
90% to 94.9% 7 points80% to 89.9% 6 points
< 80% 0 pointscorrected by Mazda (1.4%).
2 lines had no ASN at all and had to be input by Mazda
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had to be input by Mazda (2.8%).
Stop Light Status & Corrective ActionCorrective ActionIf Delivery Performance for the period is GREEN, then the supplier has met Mazda’s minimum delivery performance pp y ptargets and no further action is required on the supplier’s part.If Delivery Performance for the period is YELLOWYELLOW, then the supplier should identify the category(s) requiring improvement supp e s ou d de y e ca ego y(s) equ g p o e eand conduct the necessary process and procedure review to identify the internal changes required to improve and assure Mazda’s minimum delivery performance targets are met in the i di t f timmediate future.If Delivery Performance for the period is RED, then the supplier is performing at unacceptable levels and will be required to complete the Mazda Multi-Discipline Problem Solving Report. This includes a review of all internal processes and procedures including root cause analysis and implementation of corrective actions
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implementation of corrective actions.
Corrective Action to MazdaMazda
Self ReviewSelf Review: the supplier should recognize inefficiencies within its own processes and procedures and take correctivewithin its own processes and procedures and take corrective action accordingly to improve performance.
Mazda Multi-Discipline Problem Solving: the supplier should l t th d t id d b M d th t icomplete the document provided by Mazda that requires
focus in 7 disciplines to determine the proper corrective measures:
1. Describe the problem2. Emergency actions needed3. Contain the problemp4. Identify the root cause5. Formulate and verify corrective actions6 Correct the problem and confirm the effects
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6. Correct the problem and confirm the effects7. Prevent re-occurrence
Corrective Action TemplateTemplate
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Available on-line here:http://suppliers.mazdausa.com/Library/MNAO_8D.xls
Disputes / Concerns
To minimize disputes, Mazda will not record delivery performance metrics on emergency order types that mayperformance metrics on emergency order types that may “short” the vendor normal lead time. If service suppliers have disputes about PO Line Due dates (i e inaccurate Lead Time etc ) they must be(i.e. inaccurate Lead Time, etc.) they must be communicated to Mazda before the order quantity is placed on an ASN and transmitted.If communicated prior to ASN, Mazda can exclude those pieces from the performance metrics.Processes for handling disputes after parts have beenProcesses for handling disputes after parts have been ASN’d are limited as the web tool has not be designed initially to be dynamic enough to capture these issues retroactively
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retroactively.
How the Score Card Looks –Looks Delivery Performance
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Score Card – Summary Screen (mock-up)Screen (mock up)
Main /Start PagegLinks to detail dataLinks to “Help/FAQ”Requires secure login (assigned to certain supplier staff)
Click on “Detail” to show delivery detail (next
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Requires secure login (assigned to certain supplier staff)detail (next slide)
Delivery Detail (mock-up)
Detail in 3 Categories:
1 On Time1. On-Time Performance
2. Past Due Performance
3. ASN Performance
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Delivery Detail Data / On-Time (mock-up)Time (mock up)
Focus Points: +/ 7 d i d
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+/- 7 day grace period.Stop-light status.
Delivery Detail Data / Past Due (mock-up)Due (mock up)
Focus Point:
Focus will be on >21 Day category initiallyFocus will be on >21 Day category initially.
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Delivery Detail Data / ASN (mock-up)ASN (mock up)
Focus Point:
Focus will be on ASN Accuracy category only.
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Delivery Detailed Report –Pcs Open (mock-up)Pcs Open (mock up)
Discussion Point:
Similar detail reports for On-Time, Past Due and ASNs will be available.
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When will Delivery Performance and the Score Cardand the Score Card Launch?
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Timeline – Delivery PerformancePerformance
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Launch Timing
Insert launch letter to suppliers
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How do I Access the Score Card?Score Card?
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Score Card Access
Replaces the current supplier performance summary websiteA il bl th MNAO O liAvailable on the MNAO On-line Supplier PortalSame link will be usedSecure access required
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Score Card Access (cont’d )(cont d.)
https://portal.mazdausa.com/prod2/servlet/Supplier?id=INDEX_PAGE
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Key Contacts
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Who can I contact?
Guide to MNAO Inventory & Supply Group
MNAO Supply Chain Contacts MNAO Purchasing Contacts
Expeditor Name Phone Number Email Address Expeditor Name Phone Number Email Address
Beverly Tarala 734-782-7603 [email protected] Topor 734-782-8775 [email protected]
Jeff Knapp 734-783-8853 [email protected]
Patty Deacon 734-782-7856 [email protected] Leshinsky 734-782-7607 [email protected]
Kendra Zapton 734-782-8771 [email protected] Leshinsky 734-782-7607 [email protected]
Jerry Atto 734-782-8705 [email protected] Jordan 734-782-8703 [email protected] Pat Zak 734-782-7940 [email protected]
Don Riddle 734-783-8321 [email protected] McKee 734-783-8813 [email protected]
Robert Dushane 734-782-7126 [email protected]
Other Supply Chain Contacts Other Purchasing Contacts
Name Phone Number Email Address Name Phone Number Email Address
Mark Ostrosky 734-782-8725 [email protected] Brigit Olivero 734-783-8852 [email protected]
Gregg Thacker 734-782-8717 [email protected] Duncan McKerracher 734-782-8759 [email protected]
Mark Hierlihy 734-783-8814 [email protected]
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Thank you for your participation!
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Q & A / Feedback
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APPENDIX A – Future Enhancements
Shows Warranty & Quality events (if any)Summarizes compliance with Transportation data requirements
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p p qWill NOT use RYG status – just a report-outCritical issues shown in “Comments”
APPENDIX A – Future Enhancements (Continued)
Annual survey completed by MNAO staff that work with the supplier
RYG Rankings as follows:
1.00 ~ 2.99 = RED
3.00 ~ 4.99 = YELLOW3.00 ~ 4.99 = YELLOW
5.00 + = GREEN
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Highlights areas for further discussion