Presentation of the NSA

New Supplier Assessment

Reference : 01598_16_04465 May 2016

Contents

1 INTRODUCTION

2 EVALUATION Process

3 EVALUATION Form
& SCORING Matrix

4 REQUIREMENTS
OVERVIEW

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1 INTRODUCTION

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 39 / 61 Requirements

Scope: A complete supplier plant

Purpose:
Evaluate the manufacturing maturity of a new supplier:
Basics are in place
At the beginning of a project, evaluate the effectiveness of
operational launch organization on supplier site

Operational Requirements
Maximum duration of the evaluation on site: 1,5  2 days
Self-assessment by supplier before evaluation: Optional

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Case of use
New supplier or new supplier plants
Former supplier which has not shipped in last 12 months,
Current supplier quoted to a new commodity.

Result
Result is a risk assessment
• Recommended
• Recommended with action plan
• Not Recommended
Even with Red items, but strong action plan potential supplier could be
sourceable

Evaluation
Basic Criteria of requirement are mainly used to support assessment
Checking the readiness of potential supplier for automotive industry
requirements

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2 EVALUATION
Process

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NSA – Main Steps


Audit form sent: - 3 weeks
 QIP Presentation (90min)
Submission of the audit form

a Meeting to answer to
supplier questions

Intermediate training meeting : a

- 2 weeks b Supplier Self-Assessment

Self-ass submitted: - 1 week b a Preparation of Customer

Evaluation
Optional

Agenda sent: - 1day a b On-Site Evaluation

By Customer
0
Report sent: + 2 weeks b
a Validation of Supplier
Action Plan

+ 6 weeks
a NSA is valid for 18
Optional months
Mandatory if Supplier is selected

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NSA – Main steps
Supplier Self-Assessment – Good practices

Example

Each criteria need to be assessed Comments (in line with

in order to determinate each criteria quotation) are
automatically the quotation of to implement in the
the requirement. dedicated column.

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3 EVALUATION Form
& SCORING Matrix

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NSA - New Supplier Assessment
Evaluation Form – Creation of the empty form

Evaluation form is an Excel Worksheet

To Create an empty form use the “Header” sheet
① Need to click to NSA button.
② Need to click to OK button to create the new form

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NSA - New Supplier Assessment
Evaluation Worksheets

Header
Input of basic information (Supplier Identification, date,….).
Summary
Result of audit/self assessment calculated automatically.
Audit
Questionnaire list.
Action plan
Supplier action plan to close gaps identified during customer audit.
Instruction and Training
Description of usage of QIP questionnaire.
Link to material training in PSA B2B portal.
Action plan Instruction
Description of usage of action plan sheet.
NSA instruction
Special instructions for NSA evaluation.
Glossary
Complete list of abbreviations used in audit list.
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NSA - New Supplier Assessment
Audit Fields (1/3)

Item
Abbreviation of topic for identification (e.g.: FR - Fast Response).
Requirement
General definition/summary of the intent of requirement.
Extra scoring
Identification of the requirement overweighed. The quotation of these requirements
will impact another one key element called “EXTRA” on the summary sheet.
Criteria
Abbreviation of topic for identification (e.g.: FR21 for the first criteria of requirement
FR2).
Criteria Requirement
Detailed deployment of 'Requirement' in bullet points.
Used for collecting evidences and setting up scoring.
Two types of Criteria of the Requirement are identified:
• basic criteria (identified with Bold type) = basic requirements (must have),
• additional criteria (identified with unbold type) = additional requirements
(recommended best practice).  Only quoted in PCPA and QSB+ evaluation.
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NSA - New Supplier Assessment
Audit Fields (2/3)

Look For
Auditor hints and techniques how and what need to be checked besides
'Criteria Requirement’.
Supplier
Criteria Quotation (OK / NOK):
Self quotation done by the supplier regarding the status available in the list
and defined in « instruction and training » sheet.
Quotation :
Automatic quotation regarding the rules of quotation defined in
« instruction and training » sheet.

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NSA - New Supplier Assessment
Audit Fields (3/3)

PSA Current audit :

Criteria quotation (OK / NOK):
Quotation filled by customer (same usage as defined for supplier quotation).
Quotation Suggestion :
Automatic quotation regarding the rules of quotation defined in « instruction
and training » sheet.
SD Site Re-Quotation :
In some cases (must be justified), the auditor can decrease / increase the
automatic quotation (more details page 17).
 e.g. : The criteria is not completely implemented in the plant but several
examples were checked during the audit. To be checked during next review.

Comment
Notes for evidences and non-conformances.
For the self-assessment, supplier has to write comments.
Deviations need to be described in the way that action plan can be defined.
Customer Re-quotation need to be justified in order to explain the real status of
the situation.

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NSA – New Supplier Assessment
An example of requirement

- Requirement - Extra scoring status (for tier n requirements). Auditor hints and techniques how and
identification. - Criteria’s identification. what need to be checked besides 'Criteria
- General Definition, - Detailed deployment of 'Requirement' in bullet of Requirement’.
summary of the intent points. Supplier has to operate a system to
of requirement. meet listed expectations.

Only Basic criteria are used to set up scoring for NSA.

Note : Additional criteria's can be quoted (with no scoring impact) in
order to prepare PCPA and QSB+ evaluations.
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NSA – New Supplier Assessment
Scoring Principle

Scoring relies on 1 principle :

Standardize all your activities

& Strictly apply your standards

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NSA – New Supplier Assessment
Application

Score implementation of each requirement is based on the

evidences collected during the in-site audit.
These evidences will permit to give a status for each criteria in
order to score automatically the requirement.
In case of partial implementation of the requirement the
customer can increase / decrease this score :
Increase  Small improvement needed and customer agreement.
Decrease  Strong action plan needed and/or no customer agreement.
Some equivalency can be accepted if it permits to met the
intent of the criteria defined in the “look for”.

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NSA – Implementation Scoring
For Each Criteria

Each Criteria is scored according to the following scoring matrix:

Status Scoring for implementation of requirement

OK Criteria met (standardized and fully implemented)

Criteria not met (not standardized and / or not fully

NOK implemented)

NR Criteria not reviewed (to be evaluated during next PSA review)

NA Criteria not applicable (should be justified)

ROAD Only for NSA in case of critical situation identified (no resource
BLOCK or no decision to implement the action plan)

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NSA – Implementation Scoring
For Each Requirement

Each Requirement is scored from 0 to 3 according to the following

scoring matrix:
Pts Basic Criteria Status Additional Criteria Status
Audit
0 Number of "Road Block" >1
Goes RED
1 Number of "OK" < 50% of Total

2 Number of "OK" >= 50% of Total

No impact on requirement
All Basics scoring
3 Number of "OK" = 100% of Total
implemented
NR Number of "NR">= 1

NA Number of "NA"> 50%

No impact of additional criteria in NSA scoring. But they can be evaluated in order
to prepare next PCPA & QSB+ audits.

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NSA – Implementation Scoring
Thresholds for result calculation

Red / Yellow / Green visualization applied

Thresholds are defined on 2 levels

On each Requirement: score < 1 => Overall result goes Red

On Overall evaluation:
• score < 59% => Overall result goes Red
• 60% ≤ score < 80% => Overall result goes Yellow
• score ≥ 80% => Overall result goes Green

• Green : 80% or greater with No 0 score  Recommended

• Yellow : 60% ≤ score < 80% with No 0 score  Recommended
with action plan
• Red : 59% or a 0 score  Not Recommended

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4 REQUIREMENTS
OVERVIEW

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NSA – Requirements Overview
12 Key Elements (and 1 “EXTRA”)

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QSB plus – Requirements Overview
#1: Corporate Management and Strategy (CSM)
Level of certification :
Status of ISO TS 16949 certification & MMOGLE self evaluation.

Project Management :
Site Involvement during project.
Project milestones.
Identification of new skills.

Product / Process qualification :

Robustness of Product / Process qualification included tier n supplier.
and new equipment (maintenance involvement).
Deliverables management & Capacity analysis.

Tier n supplier management Product / Process qualification :

Evaluation and selection of supplier.
Escalation process (approved supplier list monitoring) & Audit policy.
Incoming inspection.
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QSB plus – Requirements Overview
#2: Fast Response (FR)

Fast Response meeting :;

Daily leadership meeting
Fast response Board to track internal & external issues.

Escalation process :
Internal & external communication in case of issue.
Communication between shifts (Shift book management).

Problem solving standardize methodology :

Used for all type of concerns.
6 steps: define, contain, root cause id, correction, validation,
institutionalization.
Management of lessons learned.

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QSB plus – Requirements Overview
#3: Control of Non-conforming Product (CNC)

Identification mode of the non-conforming or suspect

material

Containment process

Rework process

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QSB plus – Requirements Overview
#4: Verification Station & Error Proof Verification (VSEP)

Final Checking :
Organization
Standards

Error proofing systems :

Management of the EPS
Management of the malfunctioning / failures

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QSB plus – Requirements Overview
#5: Standardized Work (SW)

Workplace organization & ergonomic :

Safety rules & safety training.
Organization of the workplace (5S, FIFO, Visual management….).
Rules related to ergonomic.

Working instructions (production process operations & logistics) :

Standards.
Procedure to validate start of production.

Visual & appearance items (boundary samples) & control devices :

Procedure.
Management of the boundary samples.

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QSB plus – Requirements Overview
#6: Layered Process Audit & Skills Management (LPASK)

Generic layered process audit :

Written rules & check sheet definition.
Auditors training.

LPA results follow-up :

Deviations record & associated Action plans.
Countermeasures sheet.
Continuous improvement.

Employees Qualification / Flexibility Chart :

Qualification process & follow up of qualification status.
Training refreshment.
Calibration process for control activities.

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QSB plus – Requirements Overview
#7: Risk Reduction (RR)
PFMEA management :
Periodical reviews & Cross-functional approach.
Management of the highest risk items :
Identification & analysis.
Action plans follow-up.
Reactive and Proactive review :
Periodical reviews :
• Update after internal or external issues.
• PFMEA review based on KPI.
Reverse PFMEA :
• Real and effective risks verification at the workstation.
• Findings taken into account to improve process.
General Risks management to guarantee manufacturing activity :
Natural risks (floods, fire,…) & “Supply chain” risks (loss of energy …).
By-pass processes and back-up solution.
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QSB plus – Requirements Overview
#8: Managing Changes (MC)

All type of changes (planned & unexpected)

Procedure for monitoring product /process changes :
Project management.
Communication with the customer.
Management of the deliverables (documents…).

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QSB plus – Requirements Overview
#9: Maintenance (MAI)
Maintenance organization & activities (planning & tracking) :
Available resources & facilities.
Communication with manufacturing dep.
Preventive maintenance master planning / Corrective maintenance
activities.
Working standards, technical documentation.
Maintenance records (equipment diary).
L1 Maintenance management :
Definition of L1 maintenance operations.
Planning & follow-up (records).
Operators suggestions & lessons learned management.
Spare parts management :
Critical spare parts list & standardization Policy.
Stock management & storage conditions.

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QSB plus – Requirements Overview
#10: Manufacturing & Material Flow Management (MMFM)

Manufacturing scheduling :
Business Planning (=> fix the capacity).
Master production schedule (MPS => manage the resources).
Daily manufacturing program.

Storage areas & handling conditions :

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QSB plus – Requirements Overview
#11: External Logistic (ELG)
Supply process :
Master schedule of deliveries.
Reception control plan in incoming.

Shipping process :
Flow of full / empty packaging.
Shipping planning & Preparation process (Bogus truck).

Just In Time (JIT) & sequenced flows :

Implementation of failure modes in PFMEA & definition of back up solution.
Strictly compliance with customer sequences.

EDI & logistic Electronic Protocol

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PCPA – Requirements Overview
#12: Part & Process Control (PPC)
Management of the documents :
Customer approved drawing (last update available).
Process flow diagram linked with PFMEA and Process control plan.
Identification of the KPC (CSE)
Implementation of the KPC at tier suppliers.
Identification of key and pass through characteristics (included tier n).
Product & process validation at tier suppliers.
SPC & Records management
Documentation of control records included product audits.
Review of control results and associated reaction plans.
Control limits calculation.
Spare parts production
Specific process.
“End of life” management.
Storage.

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End of the presentation

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