supplier tracking and rating system

Supplier Tracking and Rating SystemSTARS

1

Supplier Tracking and Rating System

In accordance with the Textron Aviation vision to be the number one supplier of aircraft and related services in the markets we serve, the Supplier Tracking and Rating System (STARS) and Supplier Rating System (SRS) will now become STARS. This will provide a single rating system for Textron Aviation. Aligning these two systems provides the opportunity to send uniform communications that accurately rate suppliers between the two operating systems (Beechcraft and Cessna).

STARS sets competitive standards for achieving excellence in the categories of Quality, Schedule, Reliability, and Collaboration. Based on these standards, scores included on the supplier’s STARS report reflects supplier performance by category for the past 12 month period.

STARS will provide a consistent methodology for measuring performance, simplified calculations that allows focus on improvements, standardized scorecard, and will be accessible through the Supplier Portal.

Questions regarding supplier ratings should be directed to your commodity representative

STARS Overview

• STARS will run the fifth of each month

• Suppliers will receive an overall score that will consist of three to four metric ratings

• Each score will be presented based on Supplier Number assigned within each operating system

• Metric Ratings

– Quality

• Focus on performance PPM (Parts per Million)

– Schedule

• Delivery per contractual delivery date

– Reliability (as available)

• Focus will be based on a GAP ratio

– Collaboration

• Commit Date – Receipt to supplier committed date

• Advanced Ship Notification – Use of ASN system to ship parts

• Commercial Flexibility – Manual score input by Purchasing Specialist and Buyer based on how they view the supplier’s commitment to partner with Textron Aviation

• PO Acknowledgement – Supplier Portal acknowledgements at time of PO receipt

STARS Overview

• The internet browser used for viewing STARS will be critical in the functionality

• Many programs no longer support Internet Explorer and STARS is included

• One of the following Internet Browsers is recommended

–Chrome

–Fire Fox

–Microsoft Edge

4

STARS Rating Structure

Rating Description

1 Outstanding

2 Superior

3 Acceptable

4 Marginal

5 Unacceptable

Metric Area Weight

(w/ Reliability)

Weight

(w/o Reliability)

Quality 30% 40%

Schedule 30% 40%

Reliability 25% N/A

Collaboration 15% 20%

STARS Rating Tab

The STARS Rating tab gives an overall view of the supplier STARS metrics

The Supplier’s Overall Rating is provided along with the breakdown of that score for each category

The supplier’s performance over the last 12 months is broken down in three month increments for Schedule and Quality. This is an indicator of the supplier performance over time

6

STARS Rating Tab

The criteria for each score category

is provided in the Rating Tab

7

STARS – Quality Metric

• Focus will be performance through PPM (Parts Per Million)

– PPM = 1,000,000 X (Parts on Quality Notification / Parts Received)

• Suppliers will be assigned an industry type through the Quality team to be used for final scoring on PPM

Industry Type 1 2 3 4 5

Aftermarket <700 <1500 <2900 <3700 >=3700

Airframe <1800 <2700 <4500 <5400 >=5400

Airframe Metal <1800 <2700 <4500 <5400 >=5400

Airframe Non-Metal <1800 <2700 <4500 <5400 >=5400

Avionics <2900 <4200 <7000 <8300 >=8300

EMC <900 <2000 <4200 <5300 >=5300

Government Business <2200 <4400 <9000 <11300 >=11300

Interiors <100 <1000 <4500 <7100 >=7100

Propulsion <400 <900 <1800 <2200 >=2200

RAW <100 <300 <500 <600 >=600

RAW Metal <100 <300 <500 <600 >=600

RAW Non-Metal <100 <300 <500 <600 >=600

Systems <3500 <4200 <5600 <6400 >=6400

Other <1800 <2700 <4500 <5400 >=5400


• The values for the Industry Type is identified in the Textron Aviation Vendor Master

• This provides a level of measurement for Quality based on volume

• If blank, supplier will receive the score listed as “Other”

• Work with your commodity buyer if you are unsure of your commodity code assignment

9


• Inclusions

– Supplier Responsibility Quality Notifications

– Parts received for Production, Aftermarket, Service Centers

• Standard PO, Framework Order, Schedule Agreement

• Exclusions

– Rework, Repair, Warranty, Returns, and Experimental Orders

– VR/SRDR and COSAs

– LDR and SCAR Responsiveness

• Timeframe

– Rolling 12 month metric

• Scoring

– Scores will be broken out by commodity

• Reversals

– If a part is returned to the supplier and is deemed either No Fault Found or Textron Aviation Responsibility, the supplier can submit a reversal request through the Supplier Portal. The Quality organization will review the request. If approved, Quality will update the quality notification to correctly reflect responsibility and will drop from the supplier metric on the next month’s run. If denied, the Quality Notification will stand as a charge to the supplier.

STARS – Exceptions

• Quality

– Suppliers will navigate to the Quality Detail Report

– Select the item(s) that needs to be reviewed


• Quality continued…

– Select the Submit QN Reversal Request button

– Complete the justification form for each QN reversal

– Justification can be specific for each QN submitted or grouped as one

– Click the Add Justification button if additional needs to be added

Supplier X


• Quality continued…• Quality team and the initiator will receive an email with the request and process accordingly• If approved – the QN will be removed from the report in the next STARS run• If not approved – Quality will input a remark on the line item

Note: The line item will turn yellow to show all submitted items. A QN will only fall off the supplier STARS report once QA reverses responsibility of the QN in SAP and STARS has been ran again for the next month

• Once the QN reversal has been submitted, QA will communicate with the supplier on status of the request outside of the Supplier Portal

• QA may make a remark on the line item if the line has been rejected for reversal


• Quality continued…• The supplier may pull a list of QNs that have been written in the last 45 days to get advance

notice of parts rejected

14

STARS – Schedule Metric

• Inclusions

– Parts received for Production, Aftermarket, Service Centers

• Standard PO, Framework Order, Schedule Agreement

• Min/Max

• Exclusions

– Rework, Repair, Warranty, Blanket, Returns, Lawson and Experimental Orders

• Timeframe

– Measurement will start at the launch of tool, rolling the months until 12 months is reached

– Rolling 12 month metric

• Tolerance Windows

– A tolerance window will be set for receipts to determine on-time delivery


• Scoring

– On-time delivery score will be based on the total on-time lots receipts divided by the total lots received

• Min/Max will be measured at time of receipt based on the quantity in stock. If stock on hand is below Min or at zero, receipt will be considered late regardless of the noted Contractual Delivery Date listed in the report.

• All other orders will be measured at time of receipt based on the date of receipt as compared to the Contractual Delivery Date

• On-Time/Early/Late Measurements

– Receipt Date is compared to the Contract Date

– If the days difference is out of tolerance the supplier receives a Late/Early score

– If the days difference is within tolerance, the supplier receives an On-Time score

Note: Measurements are based off of the Accounting Period Workday Calendar


• Exceptions

– Suppliers will be able to dispute Late/Early measurements for the Schedule Metric through the Supplier Portal. Once the justification is submitted, the buyer will review the request and provide feedback to the supplier through the portal

• If accepted:

– Buyer will update the approval status within STARS on the line item disputed

– Buyer can update the contract date on the delivery schedule of the disputed line. When STARS runs the next month, the score will reflect the on-time delivery

– If the delivery schedule is in a schedule agreement or MinMax a record of the approval will be stored so when STARS runs the next month, the score will reflect the on-time delivery

• If denied:

– Buyer will provide a rejected status within STARS on the line item disputed. The score will remain Late/Early on the next STARS run

– Corrections can be made up to 90 days after the discrepancy occurred. It is up to the Buyer’s discretion to accept reversals requested


• Schedule

– Suppliers will navigate to the Schedule Detail Report

– Select the item that needs to be reviewed under the action column

• Only items that have Early/Late receipts will have the action button available

• Suppliers may submit one exception per line item


• Schedule continued…

– Supplier will need to select an option from the drop down for Proposed Status

– Comments can be added for further justification

– Supplier will select submit once all information is entered



– An email will be sent to the initiator of the request along with the buyer that is listed on

that line item

– The email will provide some direction for the buyer on what actions need to be taken

20



– Once an exception has been submitted by the supplier, the line item will turn yellow

– If the buyer agrees to reverse the early/late score and updates the line in STARS with

the approval, the line item will turn green

– If the buyer does not agree to reverse the score and updates the line in STARS with

the rejection, the line item will turn orange/salmon

21



– Actions available to the buyer

• Approved: Make the appropriate changes in the Purchase Order

– When STARS runs again, the supplier score will be recalculated based on the new purchase order contract dates

• Update the schedule exception in the supplier STARS schedule report

– Approved: STARS stores the approvals from the web and will recalculate the supplier score based on the buyer input

– Rejected: STARS will store the rejection noted by the buyer in the web and the score will remain the same on the next STARS run

22



– Email notifications to the initiator of the request and the buyer listed on the line item

are automatic for the initial request and the approval/rejection

23



– The Schedule Detail Report also allows users to input filters for search to narrow down the list

24

– The ability to download to Excel is also available in this section of STARS

– Lines that have been proposed for exception and answered will show within the download

STARS – Reliability Metric

• Cessna and Beechcraft product Reliability data will be documented under the CSAP supplier number

– If a supplier is unsure if they have a Reliability Metric, they may contact the Reliability group directly at [email protected]

• Raw data is gathered by CAMP

• Scores – Lifetime of program (if active production)

• Each line item is given a GAP Ratio which is determined by dividing current MTBUR/Requirement

• GAP Ratios are summed and divided by the number of analyzed components then multiplied by 100

mailto:[email protected]

STARS – Reliability Metric

• Improving the reliability of a component increases the MTBUR > Increases the GAP ratio

• Not all supplier components are rated

– Each line item is assigned a code based on its MTBUR value or Mean Life/B10 (Point where 10% will be removed) and growth value. Codes 9, 12, and 13 have not impact in STARS

• MTBUR = 20% lower than MTTF (Mean Time To Failure) - to account for no fault found

• TA Reliability Department prioritizes the components to work based on customer satisfaction criteria

STARS – Collaboration Metric

• Commit Date

– Receipt to the Supplier Proposed On Dock Date (Delivery Date)

– Measures the supplier’s ability to deliver relative to the Supplier Proposed on dock date

– MinMax – Supplier will receive the same measurement on the Commit metric as they did on schedule

– All other orders – The Receipt date will be compared to the Delivery Date and use the same tolerance limits as used on schedule

• Commit Scoring

– Commit score will be based on the total lots received on time to commit date divided by the total lots received.

Example:

Supplier X has delivered 140 shipments in the past 12 months.

139 of those shipments were on time to Delivery date

Commit score = 139/140 = 99.2%

Supplier Commit Score = 1

Note: Exception requests from the supplier are not permitted for this score


• Commit

– Status line will indicate if that order has been acknowledged

• Acknowledgement Options

– Click the box next to the PO and select “Acknowledge Selected”

– Click the purchase order number and the user will have available options


• Commit

– Once the order is acknowledged the supplier can update their Proposed On Dock Dates

– Note: Supplier Proposed On Dock Dates and Need Dates are provided for information only and do not constitute a waiver by Buyer of the Contract Delivery Dates.

• The supplier will receive a late score for Schedule but will receive an on time score for commit if parts deliver 1/30/20


• Advanced Ship Notice (ASN)

– Shipments received will be reviewed for a supplier created ASN. Supplier will receive a positive score for each lot received with an ASN attached

• ASN Scoring

– ASN score will be based on the total lot with Supplier generated ASN divided by the total lots received.

Example:


125 of those shipments had ASNs created by the supplier

ASN score = 125/140 = 89.3%

Supplier ASN Score = 2


• Commercial Flexibility

– Textron Aviation will evaluate the supply base throughout the year and determine a numeric score

• Timeframe

– The last dated score under that supplier ID will be the score reported in STARS

• Purchase Order Acknowledgement– Measure of the percentage of purchase orders that have been acknowledged at time of

receipt

– During time of receipt the purchase order will be reviewed for ACKNOWLEDGED AS IS, AWAITING INFORMATION, or COUNTEROFFER status

• Scoring

– Acknowledgement score will be based on the total lots received with PO acknowledgement divided by the total lots received

Example:


110 of those shipments had been acknowledged

ASN score = 110/140 = 78.5%

Supplier Acknowledgement Score = 3

STARS – Questions

For any questions about STARS, please contact the appropriate group listed below

• Quality

– [email protected]

• Schedule

– The buyer listed on the purchasing document

• Reliability


• Collaboration

– The buyer listed on the purchasing document

• General Questions


• Training Document will be available under the Visual Guide button

• Legends are available anywhere you see a flag




STARS – FAQ

• When will the training guide be made available?

– The training guide will be published in News you can Use on the Supplier Portal after the last training session on Thursday afternoon, January 30

• In the Min/Max environment, will a shipment be considered early if we go over MAX?

– The Supplier Portal has a formula that reviews reservations and will allow shipments over MAX. When you hover over the stock levels in the Portal, the formulas are made available

• We currently receive orders by phone, email, and the supplier portal. Will that change?

– The method of how orders are received by your company has not changed. The only change is the supplier performance measurement and how that is presented

• Is there a link where we can register for an account?

– You may request an account by selecting new user on https://ww2.txtav.com/Account/Login

• During training, you mentioned if we have any questions to contact our Buyer. Would that be a specific buyer or can it be a different one for each order?

– The buyer you work with today on any of your orders will be the buyer you will want to contact.

• What industry type has been selected for our company?

– Contact your buyer and they can review that information with you

• Are Lawson Orders included in the STARS scores?

– At this time Lawson orders are excluded from STARS

https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fww2.txtav.com%2FAccount%2FLogin&data=02%7C01%7Cscm_info%40txtav.com%7C9e61a46b844a41c4bacc08d7a36e3807%7C2d5b202c8c074168a55166f570d429b3%7C0%7C0%7C637157566098349274&sdata=6Hm2eekETzuHoBJ3xYQlbyp244w7Rz0OJh3SomCCKn4%3D&reserved=0

STARS – FAQ

• Our shipment will routinely set at the shipper and cause our orders to be late. Will that be taken into consideration for our score?

– STARS does not have a method to determine shipment delays. You will need to work with your buyer if this occurs consistently.

• Regarding the quality reversal requests, if there is only one color legend (yellow) how will I know if a request has been rejected or if it has not yet been reviewed?

– Reversals approved will no longer show on the report on the next STARS run, this is your approval indication. If rejected, we have asked Quality to provide that feedback to the supplier

• The data for Beech Defense was not included in the Beech system before, will it be include in the new STARS system?

– Beech Defense has always been included in the SRS system. I would need more information on what this is regarding

• Regarding the commercial flexibility, if we work with several different buyers, how will Textron arrive at one (1) rating?

– Those buyers will be working together to determine the rating

• We have Supplier IDs for our multiple sites. What are the implications of having multiple Supplier IDs?

– Each supplier ID will have its own STARS rating. Textron Aviation will not be combining scores for multiple sites.

supplier tracking and rating system

Documents