Enhanced Supplier Performance Measurement

Severity Incident per Billion (S-IpB)

How to access S-IpB Summary in SPM

SME / Presenter(s): Felipe Soeiro, Hanji Nagafuchi Ramirez, Kristof

Wiericx, Regine Bile, Weiren Chen
Date: July 22 & July 24, 2014
Target Audience: Suppliers
Applicable Region: Global

GM Confidential
GM1927-17 SQ Processes and Measurements Procedure
(GP5)
Table of contents:

1. Enhanced Supplier Measurement – Severity IpB

2. S-IpB Summary in SPM (Supplier Performance Metrics)
3. Q&A

Supplier Quality Mission: To be leaders

of an enterprise approach to ensure our
suppliers achieve launch and quality
excellence.

GM Confidential
 Enhanced Supplier Measurement
Severity IpB
Objectives

Apply best practices from PSA (but also already used by other OEMs like i.e. Honda,
NedCar) when dealing with incidents caused by supplier manufacturing failures

• Better Bidlist alignment with real GM / End customer impact:

- Move away from “static” PPM numbers to more “dynamic” PRR numbers
- PRR’s to reflect impact on the vehicle / powertrain as well as on the GM
vehicle / powertrain assembly plants and end customer

• Reduced number of PRR variants (600+ to 36)

• Simplified entries into GQTS

Shift to an effective supplier quality performance measurement system better

aligned with SSE

GM Confidential
 Enhanced Supplier Measurement
Severity IpB
Improvements
Bring the GM supplier evaluation method up to the next level based on best
practices from PSA

• NEW - The Bidlist will be impacted by the number of incidents created and not
only by the number of non conforming parts delivered (PPM)
• NEW - GM problem resolution reports (PRR’s) to suppliers will reflect the severity
impact on :
• Product (VEC/PT)
• GM Assembly Plants
• End Customer
• NEW - Each PRR will incorporate a weight factor based on the severity of the
issue to determine the impact to the Bidlist (i.e. field impact vs. line disruption)
• NEW - Distinct Bidlist input from both Direct Material and CCA / Aftersales

GM Confidential
 Enhanced Supplier Measurement
Severity IpB
Classification in 8 different incident levels:

Levels Definition Initial Initial Root cause Containment Full Ppm IpB Cost Bid list CS1 CS2
response root cause response recovery impact
Vehicle/Powertrain
Level A Line accumulations Y N N A N A N A N N N impact
Supplier initiated
Level B Y Y A Y A N N A N N N
-Not detected by the customer
Supplier Actions
Supplier Alert
Level C GM request for support Y Y A A A N N N N N N
from supplier GM Actions
A single case non-conformity
-no WHF/Breakdown failure
-no legal failure N = Not requested
Level D
-no safety failure Y Y A Y Y Y Y Y N N N A = Available Option
-no downtime
-parts not yet mounted OR Y = Yes
rework time on vehicle /
powertrain less than 10 minutes

Multiple nonconformities of
level D
-total rework time less than
Level E 20 minutes Y Y Y Y Y
Mislabeling
Y Y Y Y A A
-no line shutdown
-no rework
Level F Repeat of level B, D or E Y Y Y Y Y Y Y Y Y A A
G.1 Nonconformities
-not covered by Level D & E Y Y Y Y Y Y Y Y Y A A
Level G - No critical failure

G.2 Critical failure Y Y Y Y Y Y Y Y Y A A

Level H Repeat of level G (H1 or H2) Y Y Y Y Y Y Y Y Y A A

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

A. Quality PRR: new Classification

The impact of a quality PRR will be defined based on the plant impact and the vehicle / powertrain / component
impact (PRR event) of the incident caused by the supplier.

PRR/Incident Impact
Line accumulations*
Supplier-initiated*
Customer alert*
A single case non-conformity
Vehicle/Powertrain impact
Multiple non-conformities

Mislabeling
Repeat PRR’s
Critical failure*
No impact/Defect never introduced/sequenced
Part sorting/rework/scrap

Plant impact Vehicle/Powertrain/Component on hold

Schedule attainment
Yard hold*
Downtime/Plant disruption*
* = More details on next slides

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)

2. Quality

A. Quality PRR: new Classification

Line Accumulations

Definition:
• Unavoidable discrepancies or single cases of commodities
• It includes those parts that are scrapped in customer lines due to internal defects in the
part, not detectable by the supplier, and which are revealed by the customer’s internal
processes

Issuance:
• No bid list impact,
• If the frequency of the re-occurring discrepant parts disturbs the customer’s
New

manufacturing process, a regular Quality PRR according to the PRR Severity Matrix may be
issued.

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)

2. Quality

A. Quality PRR: new Classification

Supplier Initiated PRR / Incident

• Supplier notified the customer of a possible nonconformance prior to the customer

identifying/detecting the problem
• If the customer is already impacted (nonconforming parts at production line or already
built in), a quality PRR with bid list impact will be raised.
• Costs incurred by the customer (e.g. sorting, rework) may still be charged to the supplier
• The weight of the incident will be based on the PRR Severity matrix

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

A. Quality PRR: new Classification

Supplier Alert

• Used in case of:

 Request support from supplier in root cause analysis
 Issuing location detects a slight drift within the tolerances of a part

• No Impact to supplier metrics – No Cost recovery should be issued

• By default supplier needs to provide findings within 15 days. If a response is not received
New

from the supplier within 15 days, the customer may still issue a Customer Satisfaction PRR
with direct impact to the Global Purchasing bid list.

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

A. Quality PRR: new Classification

Supplier Alert

Special Case – Non-quality customer alerts:

Definition : Supplier Notification to request support in root cause analysis

• No Impact to supplier metrics

5 non-conformity categories
Quality Alert

Engineering Alert*

Shipping Alert*

Packaging Alert*

Indirect Material Alert*

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)

2. Quality

A. Quality PRR: new Classification

Critical failure

Nonconformance that may

 cause an event that presents a risk of affecting safety/health of user, third parties or anyone
New

working on the vehicle.

 be declared by the final customer, such as preventing a vehicle from starting or operating.
 be declared as a regulatory compliance failure (e.g. CCC : China Compulsory Certificate).

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

A. Quality PRR: new Classification

Yard hold

All vehicles/powertrain/components in the GM/ customer plant will be held until risk
evaluation and/or rework has been finalized.

Downtime

• A problem has been identified and verified as supplier fault AND

• Requires a plant to stop production of its products AND
New

• The downtime experienced is 1 minute or longer AND

• The line stoppage occurred in the “main production” line.

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)

2. Quality

A. Quality PRR: new Classification

Plant Disruption

• Operations out of normal standardized work that ultimately impacts quality, cost, and
throughput OR
• Plant daily production mix is significantly altered OR
• Main assembly line: a downtime of >= 20 minutes (or cumulative within the same shift)
OR
• Nonstandard labor for a minimum of 50 hours (includes inspection, repair and/or
reconfirmation) OR
New

• Yard hold, ultimately resulting in rework OR

• Increase on hand float by 40 products.

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

B. Supplier Partnership PRR

 Definition:

A supplier partnership PRR should be issued when the customer has verified that a nonconformance
in the supplier-customer partnership was caused by the supplier.

 3 Different type of Supplier Partnership PRR’s:

• Customer satisfaction PRR

• Program Managment issue PRR
• SQD Cost recovery PRR

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

B. Supplier Partnership PRR

 Customer satisfaction PRR

• A Customer Satisfaction PRR may be issued when the customer has verified that any other
nonconformity, excluding pricing or other commercial issues, was the result of a supplier’s
action or inaction.
• Issued by plant and SQ

E.g but not limited to:

• Communication requirements for data or information

• Lack of responsiveness, timeliness, or deadline issues
• Procedural requirements
• Unauthorized Change*

* = More details on next slide

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

B. Supplier Partnership PRR

 Customer satisfaction - Unauthorized Change PRR

• Change in supplier Manufacturing process or material without prior approval from GM/
• Issued by SQ only

E.g, but not limited to :

• changes to a manufacturing location

• material changes
• Tier 2 location changes
• engineering changes

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

B. Supplier Partnership PRR

 Program management issue

• May be issued for a nonconformance that does not result in part damage or does not affect the
salability of the part.
• Issued by SQ only

E.g, but not limited to :

• BTAB (Business Transfer Approval Board) management failure

• Engineering changes management failure
• Data submission issues (APQP)
• Non-responsiveness or lack of cooperation

GM Confidential
 GM1927-17 SQ Processes and Measurements Procedure
(GP5)
2. Quality

B. Supplier Partnership PRR

 SQD cost recovery

• Other costs associated with the impact of a nonconformance that results in additional cost to
the customer are eligible for a cost recovery request.
• Issued by SQ only

E.g, but not limited to :

• Expenses incurred by the customer for travel to the supplier location

• Conference call

GM Confidential
GM1927-17 SQ Processes and Measurements Procedure
(GP5) - GQTS Severity Matrix Drivers

Vehicle / Powertrain / Component Impact 4 ↔ Plant Impact 5

1
2
3

4
5

GM Confidential
GM1927-17 SQ Processes and Measurements Procedure
(GP5) - GQTS Severity Matrix Drivers

Vehicle / Powertrain / Component Impact 4 ↔ Plant Impact 5

2 1
3

4 5

GM Confidential
Severity Matrix - Weight Factors Basic Principle

Single Incident Field Impact

GM Assembly plants (i.e. Shipping yard)

Single Plant Field

Sorting Yard Down
Incident / Disruption Impact
Rework Hold Time
Line Rej.

Minor 1 2 3 4 5 6
dissatisfier
Scratched bumper

2
……..
Product
3
……..
Safety/Legal/
Walk Home 4
Failure
Leaking fuel line
1 -> 6 = Weight factor to define bidlist impact
(This will be used for the Severity IpB Calculations)

GM Confidential
 Severity Matrix - Weight factors Plant Impact

-No Impact to the -Impact on schedule

Level definition
Vehicle/Powertrain/
assembly/powertrain/ attainment. Plant
parts sorting/rework Components on hold,
component plant < 40 vehicles / powertrain disruption
potentially resulting in rework Yard hold / Field
-Defect never introduced in the affected per production (See Terms
(part not assembled on on production line, end of Downtime Impact
production process. day. and
the vehicle/powertrain) production line or scrapping of
-Defect never sequenced to the -Downtime on sub assy Definitions)
vehicle/powertrain/components
production line. line/station

Line accumulations
Level A (See Terms and Definitions) 0

Supplier initiated
Not detected by the customer
LevelB 0 0
Customer alert
-PSA/GM request for support
Level C from supplier 0 0 0

A single case non-conformity

Vehicle -no critical failure
-no downtime
/ PWT -parts not yet mounted OR
Impact rework time on vehicle /
powertrain less than 10 minutes
LevelD 0 0 3

Multiple nonconformities of level D

-total rework time less than 20 minutes
OR
Mislabeling with
-no line shutdown
-no rework
Level E 0.25 1 3 5 12.5 20
Level F repeat of B, C , D or E 0.5 2 4 6 13.5 21
G.1 Nonconformities
-not covered by Level D & E
Level G
-no critical failure 1 3 5 7.5 15 22
G.2 Critical failure 2 4 7 15 20 25
repeat of G1 3 5 10 20 25 30
Level H
repeat of G2 4 6 12 22 30 35

Used as weight factor in Severity IpB.

GM Confidential
 Bidlist Impact Concept
Current Calculations PPM – Based on 12 months
Problem Resolution Expectations for all suppliers:
Report (PRR) Do Not Build and Ship defects

# of NOK parts

* PPM (Parts per Million)

PPM * PPM for supplier X= # NOK parts last 12 months X 106

# parts delivered last 12 months

Compare to
PPM target by CT

PPM to target (supplier X) Bid List Impact

Bidlist points deduction 0 => 99% of CT target 0
100% => 199% of CT target 5
200% => 299% of CT target 15
>= 300% of CT target 25

GM Confidential
 Bidlist Impact Concept
Future Calculations IpB – Based on 6 months

Problem Resolution Expectations for all suppliers:

Report (PRR) Do Not Build and Ship defects

# of Incidents (Move from NOK parts)

*IpB (Incident per Billion)

IpB* (Move from PPM) IpB for supplier X= # incidents (PRRs) last 6 months X 109
# parts delivered last 6 months

Shown on 6 panels to show Line accumulations, Supplier initiated,

suppliers amount of and Supplier Alert PRRs are excluded
from IpB calculation
incidents per receipt

GM Confidential
 Bidlist Impact Concept
Future Calculations Severity IpB – Based on 6 months
Expectations for all suppliers: Do Not Build and Ship defects
Problem Resolution
Report (PRR) Enhanced measurement Input: Incidents, Severity and
Deliveries

Severity Score (move from PPM)* * Severity Score = Incident(PRR’s) x Weight factors

** Severity IpB (Severity Incident per Billion)

S-IpB for supplier X= # Sum of Severity Score last 6 months X 109
Severity IpB ** # parts delivered last 6 months

Compare to
Severity IpB target by CT
(new targets will be set monthly)

Line accumulations, Supplier

Bidlist points deduction as
function of severity level
Severity IpB to target (supplier X) Bid List Impact initiated, Supplier Alert PRRs are
0 => 99% of severity IpB target 0
excluded from S-IpB calculation
100% => 199% of severity IpB target 10
200% => 299% of severity IpB target 20
>= 300% of severity IpB target 30

GM Confidential
 Severity IpB Calculations
Examples – Single PRR

EXAMPLE: Supplier X received 1 quality PRR (leaking fuel EXAMPLE: Supplier Y received 1 quality PRR (leaky fuel
lines + 2 vehicles were put on hold) and delivered 100000 parts lines + caused a plant disruption) and delivered 100000 fuel
in the last 6 months lines in the last 6 months
1 PRR with a weight of 4 1 PRR with a weight of 20

Severity Score = 1 x 4 = 4 Severity Score = 1 x 20 = 20

Severity IpB = 4/100000 X 10 9

= 40000 Severity IpB = 20/100000 X 10 9
= 200000

Severity IpB Target Severity IpB Target

= 50000 = 50000

S-IpB => 99% of S-IpB supplier target S-IpB => 300% of S-IpB target
No bidlist points deduction 30 points deduction on the bid list
Severity IpB to target (supplier X) Bid List Impact
0 => 99% of severity IpB target 0
100% => 199% of severity IpB target 10
200% => 299% of severity IpB target 20
>= 300% of severity IpB target 30

GM Confidential
 Severity IpB Calculations Examples
Multiple PRRs – Some with no impact – Method 1
Example: Severity Score and Severity Ipb Calculation:
- Supplier delivery 100.000 in the last 6 month
- Supplier received 08 PRRs in the last 6 months
Weight Factor from each PRR (last 6 months):
5 PRRs = 0 Weight factor (Level A/B/C or D (without Yard Hold))
1 PRR = 1 weight factor -> Severity score = 1 X 1 = 1
1 PRR = 5 weight factor -> Severity score = 1 X 5 = 5
1 PRR = 3 weight factor -> Severity score = 1 X 3 = 3

GM Confidential
 Severity IpB Calculations Examples
Multiple PRRs – Some with no impact – Method 2
Example: Severity Score and Severity Ipb Calculation:
- Supplier delivery 100.000 in the last 6 month
- Supplier received 08 PRRs in the last 6 months
Weight Factor from each PRR (last 6 months):
5 PRRs = 0 Weight factor (Level A/B/C or D (without Yard Hold))
1 PRR = 1 weight factor -> Severity score = 1 X 1 = 1
1 PRR = 5 weight factor -> Severity score = 1 X 5 = 5
1 PRR = 3 weight factor -> Severity score = 1 X 3 = 3

GM Confidential
 Severity IpB Concept - Simulation Results
Examples
Supplier Relationship Bidlist Quality Direct impact:
If supplier has a repeat supplier Relationship PRR what is the impact?

Impact of the repeat PRR = Direct Impact x 2

Example : Supplier Y got 2 program management PRR and the second one is
flagged as repeat.

The direct impact on bid list will be 5 + (5 x 2) = 15 points deduction.

GM Confidential
 Severity IpB Calculation - CT Target
Expectations for all suppliers is Zero Defects. The target is dynamic and not static. The target is not
for suppliers to achieve. It is used to compare suppliers within the same creativity team.
Severity IpB Worst
Creativity Team (7 suppliers)
• Good supplier
• Bad supplier

CT Severity IpB Target =

Average CT performance
Best

Suppliers

Experience / Lessons Learned from PSA:

 Target = average CT Severity IpB performance
 Exclude worst and best Manufacturing Duns in CT in average
calculation, not to have a skewed target
GM Confidential
 Severity IpB Calculation
CT Target - Suppliers delivering multiple CT’s
• Every month create automatically a target per Manufacturing Duns based on the previous 6 months CT
delivery split weighted with the new CT targets

• Example:
Situation sketch: Supplier delivered in the last 6 months to 3 different CT’s with following volume split:
– Volume CT 1: 100000 (50%)
– Volume CT 2: 50000 (25%)
– Volume CT 3: 50000 (25%)
New targets defined as:
– Target CT 1: 500
– Target CT 2: 1000
– Target CT 3: 15000

Overall target = 500*(50%)+1000*(25%)+15000*(25%) = 4250

GM 31
Confidential
 Enhanced Supplier Measurement
Severity IpB
Quality Ranking Bid List Impact
Categories: Current Bidlist 2014 Future BidList 2015
New Business Hold -100 -100
Supplier Fault Field Action -30 -30
Unauthorized Changes -20 -20
Lack of TS16949 Certification -10 -10
Lack of QSB Certification -10 -10
Plant Disruption -20 >=2 -100
PPM (above target) -5 / -15 / - 25 Severity IpB (above target) -10 / -20 / - 30
Controlled Shipping (CS1 / CS2) -5 / -10 (Integrated in Severity IpB) 0
Program Management occurrence -5 -5
Customer Satisfaction 0 -1

Safety Measures based on

6 months

1) Plant Disruption > =2 Deduction = -100

2) Program Management >= 3
3) CS-1 >= 3
4) CS-2 >=2
5) Launch PRRs open >=4
Deduction = -100
Deduction = -100
Deduction = -100
Deduction = -100
GM Confidential
 Enhanced Supplier Measurement
Severity IpB
Current Bidlist based on 12 months

RANK SUPPLIER QUALITY SERVICE PRICE

Country Risk Rating

Controlled Shipping

Controlled Shipping
Major Disruptions

Systems Basics
Prog Mgt PRR's

TS16949 Cert.
Financial Supplier

Launch PRR's

QSB - Quality
Lead Region

GSC Rating

Total PRR's
MMOG/LE

Risk Quality

ISO14001
Mfg.Duns

Diversity
Location
Service

Level II
Quality

Level I
Rating-FRR Excellence
Name
Price

PPM

NBH
Aw ard
12 Mo. 6 Mo. 6 Mo. 6 Mo.
Jan 14 Plant/UnAuth Field Open Open
Perform ance Criteria
<80 R 3 R R >1 >2 >4 >2 >1 E,N Y E,N 4,5 4,5,6,7
Y 2 Y Y 1 1-2 1-4 1-2 1 W,F W,F 3 3
>=80 G 1 G G,NR 0 0 0 0 0 C,NA N C,NA 1,2 1,2

Quality Ranking based on 100 possible points

Sourceable, “Green”, if point value is 80 or above. Non-sourceable, “Red”, 79 or below

GM Confidential
 Enhanced Supplier Measurement
Severity IpB
Future Bidlist based on 6 months

2. New Measurement
1. Distinct ranking for supplier 3. New PRR type: 1. Distinct ranking
for CCA/Aftersales performance: Partnership for CCA/Aftersales
Severity IpB

SUPPLY
RANK SUPPLIER QUALITY CHAIN CCA / Aftersales PRICE

Excellence Award
Supplier Quality
Conflict Minerals
Shipping Level II
Shipping Level I
CCA/Aftersales

TS16949 Cert.
Supply Chain

Country Risk

Lead Region

Severity IpB

Total PRR's
Partnership

Field Action
Finan
MMOG/LE

Controlled

Controlled

ISO14001
SC Rating
Mfg.Duns

Diversity
Location

cial

Service

Launch
Quality

Quality
Rating

Name

+
Price

QSB
PPM

NBH
PSA

IpB

Risk
6 Mo. 6 Mo. 6 Mo. 6 Mo.

Custo
Prog Una mer
Mgt uth. Sat. Open Open
Sourceable

80 90 ? 2 Y R X X X GME Y 0 0 0 0 0 0 0 0 0 E N N 3 0 N N

GM Confidential
 S-IpB Summary in SPM
• Temporary report generated to provide a 5 months
learning curve to suppliers and allow suppliers to:
– Familiarize with the S-IpB concept
• Understand shift from PPM to S-IpB
– Understand the inputs of the quality ranking in the future
bidlist that will launch in January 2015
– Take actions to improve quality performance and achieve
quality excellence
• Only available from Aug 4, 2014 to December 2014
– Expected to be removed December 31, 2014
• It is not the Bidlist and does not replace the bidlist

Supplier Quality Mission: To be leaders of an enterprise approach to

ensure our suppliers achieve launch and quality excellence.

GM Confidential
How to access S-IpB Summary in SPM

Click Here

GM Confidential
 How to access S-IpB Summary in SPM

Scroll down
When you
get
This window
Until you
reach the
bottom of
the page

GM Confidential
 How to access S-IpB Summary in SPM

Click Here
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 How to access S-IpB Summary in SPM

Click Here

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 S-IpB Summary in SPM
Example of Ultimate duns with Mfg duns >=20

Click Here to view all

The manufacturing
duns
Associated to the
ultimate duns

If Ifyou
youclick
clickonona aMfg
Mfgduns
duns
YouYougetgeta ascreen
screenspecific
specifictoto
TheThemfgmfgduns.
duns.See
Seenext
nextslide
slide

This screen only shows the Top 10 Mfg duns with the highest S-IpB Quality Score and
Top 10 Mfg duns with the lowest S-IpB quality score

GM Confidential
 S-IpB Summary in SPM
Example of a Manufacturing Duns Screen

GM Confidential
 S-IpB Summary in SPM
Example of Ultimate duns with Mfg duns < 20

Some Mfg duns do not

have quality data
available (N/R)

GM Confidential
 S-IpB Summary in SPM
Example of Ultimate duns with 1 Mfg duns

This ultimate duns only

has 1 Mfg duns

GM Confidential
 S-IpB Summary in SPM
Example of Ultimate duns with 1 Mfg duns

This ultimate duns only

has 1 Mfg duns but the
duns does not have
quality data

If you click on a Mfg duns

You get a screen specific to
The mfg duns. See next slide

GM Confidential
 S-IpB Summary in SPM
Example of Ultimate duns with 1 Mfg duns

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Q&A

GM Confidential
 Frequently Asked Questions
Severity IpB
Q1 – Where can we find the training material?

Answer
1

GM Confidential
 Frequently Asked Questions
Severity IpB
Q2 - What is the supplier roll-out timeline?
Answer
Roll-out to Supply Base Target Date
SupplyPower Bulletin to reflect changes in GQTS April 4th, 2014

Supplier Business Meeting April 16th, 2014

Global WebEx Training with Key and Critical suppliers June 24 and June 25, 2014

Global Webex Training with supply base July 2014

Regional Supplier Symposiums with Key & Critical suppliers July 2014 & August 2014

Regional communication with suppliers shifting from Green to

July & August 2014
Red

Report available in SPM to allow suppliers to understand the S-

August–December 2014
IpB and work to improve their rating to Green or remain Green

Monthly bulletins to engage suppliers to use SPM reports and August–December 2014
answer Frequently Asked Questions

Weekly Bulletin in December – Reminders for bidlist effective

December 2014
date

Revised Bid List Effective Date January 2015

GM Confidential
 Frequently Asked Questions
Severity IpB
Q3 – Who can I contact if I have questions about the Severity IpB?

Answer

Region Name Email

GMIO Weiren Chen weiren.chen@gm.com

GMSA Felipe Soeiro felipe.soeiro@gm.com

GMOV (Europe) Kristof Wiericx kristof.wiericx@gm.com

Hanji Nagafuchi hanji.nagafuchimartinez@gm.com

GMNA (Mexico)
Martinez
GMNA regine.bile@gm.com
Regine Bile
(US/Canada)

GM Confidential
 Frequently Asked Questions
Severity IpB
Q4 – How will GM ensure the highest severity scores are validated?

Answer

There will be a management oversight and approval required for the highest severity
scores.

Q5 – In determining Sev Ipb target, is the average S-Ipb calculated among

the suppliers of same type commodities, or among all suppliers regardless
of which commodity type?
Answer
S-IpB Target is calculated among suppliers of same creativity team (Same type
commodities)

GM Confidential
 Frequently Asked Questions
Severity IpB
Q6 – Will supplier alert & supplier initiated PRR be visible on 6 panel chart?

Answer
Supplier alert and Supplier initiated PRR will not be counted in IpB and S-IpB,
therefore are not visible on 6-panel

Q7 – Will the S-IpB Target be visible to suppliers? Where can we find it?
Answer
The S-IpB target will not be visible in SPM in August 2014 and we are working to have
it visible in January 2015. We’ll communicate where to find it in January 2015.

Expectations for all suppliers is Zero Defects and achieve quality excellence. The S-
IpB target is dynamic and not static. The target is not for suppliers to achieve. It is
used to compare suppliers within the same creativity team. You can not use the
current month S-IpB target to forecast your performance for the next month.

GM Confidential
 Frequently Asked Questions
Severity IpB
Q8 – Is this new GP5 applicable to Tier 2 direct buy supplier? –

Answer

The new GP5 is applicable to Tier 1 suppliers and Tier 2 directed buy RASIC B.

GM Confidential
SUPPLY CHAIN BID LIST IMPACT (6 PANEL CHART)
New

53 GM Confidential
Q10 - Will CCA PRR’s count against suppliers in the Quality ranking in the bid list January 2015?
Answer: No. CCA PRR’s will no longer be included in the Quality Ranking. See new CCA bidlist impact

CCA – PRR Weight Factor - Bid List Impact

PRR type Primary NC Direct Impact Direct impact
Secondary NC Description
description Description CCA Quality CCA Service
Failure to Meet Packaging Spec Submission Dates 2
Failure to meet PRR response time initial / final responses 2
Failure to Return Phone Calls 2
Customer Satisfaction
Failure to Supply Documentation 2
Inadequate Corrective Action Responses 2
Shipped without PPAP / EI Approval 5
Inadequate Corrective Action Responses 2
Indirect material
Other 5
Appearance Discrepancies 5
Assembly Discrepancies 5
Quality Dimensionally Out of Specification 5
Fabrication Discrepancy 5
Miscellaneous 1
CCA / Aftersales Container Misappropriation 5
Packaging Miscellaneous 1
Parts not packaged to specification for service 5
Documentation / Paperwork Discrepancies 5
Electronic Communication Discrepancies 2
Miscellaneous 1
Shipping Responsiveness, Reliability, Flexibility 2
Schedule Discrepancies 12,5
Transportation / Carrier Discrepancies 2
Schedule responsiveness warning letter 5
COO Incorrect/Missing 5
COO registration missing 5
Labeling
Labeling 5
Miscellaneous 1

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