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Balanced Scorecard – Supplier Users

Purpose

The purpose of the supplier balanced scorecard is to clearly communicate the Nexteer expectations, suppliers performance and is a tool to compare suppliers. The scorecard is broken down into 4 major categories (Quality, Cost, Delivery and Responsiveness) and is calculated less any High Impact or NonCompliance deductions. Bonus points may be awarded for exceptional launch performance, cost management or quality improvement.

Q + C + D + R + Bonus – (Deductions) = Total Score

Scorecard Period

The Nexteer scorecard is aggregated monthly using data within the past 6 months. Suppliers will receive a monthly and 6 month scores each with a maximum of 100 points. Suppliers who do not have 6 months of data will not receive a 6 month overall score. The scorecard will be available online via the Intelex System.

Supplier Performance Levels

Supplier Performance Levels

The Nexteer Supplier Scorecard performance levels are used as a measurement tool to compare suppliers. The performance level scores are measured by the 6 month overall score.
Green – 85 – 100
Yellow – 70 – 84
Red – 0 – 69

 

SCORING RULES

 

Quality (40 points)*

Quality is measured by 2 categories Defect Rate (Parts Per Billion) and Complaint Rate (Complaints Per Billion) issued within the scorecard period. The Number of Complaints contains only complaints of the Part Quality, APQP Activities and Packaging type. Any Problem case of these types that has not been cancelled or successfully disputed will be included.

Defect Rate – PPB (15)
Fx: (6 Mo. Rolling Defect Parts / 6 Mo. Rolling Receipts) * 1,000,000,000
Scoring details:
PPB is 0 = 15 Points
PPB is 1 – 7,000 = 12 Points
PPB is 7,001 – 15,000 = 10 Points
PPB is 15,001 – 50,000 = 5 Points
PPB > 50,000 = 0

Complaint Rate – CPB (25)
Fx: (6 Mo. Rolling Complaints / 6 Mo. Rolling Receipts) * 1,000,000,000
Scoring details:
CPB is 0 = 25 Points
CPB is > 0 – 350 = 18 Points
CPB is > 351 – 750 = 13 Points
CPB is > 751 – 1,250 = 6 Points
CPB is > 1,250 = 0 Points

*PPB & CPB evaluations are now based on a rolling 6 month average effective 1/1/2018

**Receipt month may vary from shipment date due to transit time.

Cost Savings (30 points)

Part Price Variance (PPV) is scored based on the % of a supplier’s annual savings goal being met. See point calculation example below.

*PPV = (Calendar Year Booked Savings / Calendar Year Sales to Nexteer “APV”)

Calculation: (PPV / Commercial Target) * 30 = Score

Ex: (2.27% / 4%) * 30 = 17 Points

*In this example 4% is used as the savings target, however your actual target may vary. Please check your scorecard details for your actual target.

Delivery (15 points)**

Delivery assesses the supplier’s performance in meeting Nexteer’s material and information requirements. Criteria are: shipping product on time (5 points), shipping the correct quantity (5 points), communicating electronically (2.5 points), and ensuring proper and accurate shipment documentation (2.5 points). The Intelex Problem Case Management System is used to manage delivery issues.

**Delivery Scoring rules for 2022 are still being updated. For Suppliers shipping into North America (US or Mexico), up to 10 points may be deducted each month based on the suppliers QAD performance rating. For questions regarding a suppliers QAD deduction on a specific scorecard please contact your Material Coordinator.

Shipping and Packaging (10 points)

Measures the supplier’s compliance to agreed packaging and shipping requirements. Complaint types include Container Issues, Foreign Material, over / under shipment, On Time Delivery / Availability and Failure to use Nexteer Specified Carrier. Any Problem case of these types that has not been cancelled or disputed will be included.
Scoring details:

For On Time Delivery PCs (max of 5 points allowed):

No complaints = 5 points
1 complaints = 3 points
2 complaints = 1 point
3 or more complaints = 0 points

For Schedule Discrepancy PCs (max of 5 points allowed):

No complaints = 5 points
1 or more complaints = 0 points

Documentation and Communication (2.5 points)

Measures supplier adherence to documentation requirements and accuracy. Complaint types include Labels, ASN’s, Bills of lading, Packing Lists and PO Reference. Any Problem case of these types that has not been cancelled or disputed will be included.
Scoring details:

No complaints = 2.5 points
1 complaints = 0 points

Delivery Customer Satisfaction (2.5 points)

Measures the supplier’s responsiveness to requests and issue resolution.
Scoring details:

No complaints = 2.5 points
1 complaints = 0 points

Problem Case Responsiveness (15 points)

Responsiveness is measured by the supplier’s ability to respond to problem cases in a timely manner. Any case in the scorecard time period that is of Part Quality, APQP Activities,Packaging or Shipping complaint type and is not disputed (approved) or canceled will be counted towards responsiveness.

Scoring details:
Past due or late Initial Response = -5 points for each occurrence
Past due or late Root Cause = -5 points for each occurrence
Past due or late Implementation = -5 points for each occurrence

*Max 15 points

Customer Satisfaction (bonus points)

Bonus points may be awarded in addition to the 100 points available through Quality, Cost, Delivery and Responsiveness.

Extraordinary Cost Management (10 points)

10 points may be awarded to the supplier by their GSM representative. The bonus points are requested through Intelex and must be approved by an ECM or Regional Director. The maximum points awarded are determined by your total cost score before bonus points and cannot exceed the 30 points available in the cost category.

Quality Improvement (10 points)

Up to 10 points may be awarded and is measured by monthly CPB improvement performance. The maximum points awarded are determined by your total quality score before bonus points. *37 of the 40 points can be achieved with bonus points.

The quality bonus points will be subject to the scale below.
Improvement is >= 4.16% = up to 10 points*
Improvement is > 2.08% = up to 3 points*
Improvement is > 0.01% = up to 1 point*

Deductions

High Impact Problem Cases (deduction)
The High Impact Quality category is used to deduct points off the scorecard for only High Impact problem cases.

Deduction details:
1 Spill = – 20 Points max per month
Nexteer production interruption (shutdown) = -20 Points max per month
1 OEM Impacted (formal / informal customer complaint) = -5 Points max per month
1 Repeat Problem Cases = -5 Points max per month

Noncompliance (deductions)

The Noncompliance deduction category is used to deduct points for failure to comply with specific Nexteer systems requirements that assess supplier risk, maintain effective communication and meet government requirements.

Deduction details:

Vontik Noncompliance = -5 Points max per month
Profile / Quality Certification Noncompliance = -5 Points max per month
C-TPAT Noncompliance = -5 Points max per month

VIEW SCORECARD

View demonstration videos below.

Viewing your scorecard – English (4:09)
Viewing your scorecard – Chinese (coming soon!)
Viewing your scorecard – Portuguese (coming soon!)

Scorecards are automatically generated each month. As a Nexteer Supplier, you will have access to only your Supplier Scorecards.

  1. If you have child locations accessible to you start by selecting the location from the Location dropdown in the top right hand corner. If you do not have child locations your location will already be active.
    location_pick-1
  2. To access the system navigate to the Balanced Scorecard System Application by clicking on the Dark Grey box under the Intelex logo in the top left of the application. Once this application page loads, a list of all available scorecards is displayed. By default an overview screen is displayed. To view the monthly scorecard, switch to the Monthly Scorecard view by clicking the Custom Inventory link on the right side of the page and selecting “Scorecard Monthly”.
    inventory_selectmnthly_view
  3. To view the detail click on the date period link.
    scorecard_select-1