Supplier Maturity

Assessment

SMA pre-brief 2023

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1 © 2023 Nokia Nokia internal use
Supplier Maturity Assessment
(SMA) – Brief
Based on SMA SOP dated May 2022

Safety and Security Manager - Indonesia

Muliantara.Soewarma@nokia.com
089603010115
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 Nokia Supplier Maturity Assessment (SMA)
Explanation of the process and expectations of suppliers

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 1.What is a Nokia
Supplier Maturity
Assessment?
Health and Safety Supplier Maturity
Assessment (SMA) is an evaluation
method to determine the suitability of the
safety controls implemented by supplier
performing high risk activities on Nokia’s
behalf.

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Our Industry health and safety risk profile
Fatal, Critical and High Potential incidents

Working at Height Rigging and Lifting

Majority were working at There was an increase on
height incidents. rigging and lifting
incidents.

Road Safety Street Works

4
Followed by vehicles There was an increase on
incidents. street works incidents.

Electrical Underground Works

And electrical incidents. And underground assets
incidents.

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 • Suppliers performing High-risk activities are identified,
• Suppliers are H&S evaluated and qualified prior appointment;
• Nokia H&S requirements, rules and expectations are communicated and apply
equally to any supplier;
• H&S performance monitoring alongside with operational performance;
• H&S poor and good performance are linked to consequence and recognition.

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How to conduct SMA

• Conducted as a face-to-face evaluation (preferred process), typically at the supplier's

premises.
• Uses a predetermined set of criteria, covering several areas detailed later in this
document,
• Led by a CPO PE Safety & Security professional and attended by BG’s Procurement
and Project team representatives when possible.
• When conducting the SMA the assessor must upload the evidences that supports
the scoring provided, this will allow post verification and will support the periodical
re-assessment.

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SMA Process Flow and Responsibilities
Supplier Manager / Supplier Quality Market Procurement
HSSE Manager Supplier Manager
SDM Manager Manager Head

SIF -Supplier
Information Form
Responses (Self Approved &
Assessment by YES HSSE Conduct SMA Qualified
Supplier-Pre- HSE
Qualification) Question YES
s
Complia
nt? Exceptio
SMA
n
Score?
≥3.0
NO Approval
?
YES
NO
Improve
<3.0 Improvement Plan d?

NO

Block for PO and/or Phase Out

2 days 7 days 14 days 30 days 7 days

To check SIF Decision for exception Conduct SMA Improvement Phase Block for PO or
Response by SQM approval by SM by HSSE ops by HSSE ops Phase Out by
SM
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 The SMA should be reviewed periodically to ensure the supplier
qualification and capability, at a minimum every 2 years.
In cases where there have been significant changes in the
supplier's operation, type of work and scope, performance, or
requirements a review may need to take place sooner. The
schedule and plan must be maintained by CPO PE S&S.

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SMA Re-Assessment Flow and Responsibilities
Archer Automated Supplier PIC Archer Automated PE Safety and Security Operations Supplier Manager

Assurance : PE S&S
sample 30% supplier self
44 days before SMA expire, SMA to check the self
Notification to supplier for Supplier assessment quarterly
SELF RE-ASSESSMENT SELF-SMA
(Microsoft forms) Approved &
∆<0.5 Qualified

HSE SMA SMA ≥3.0

Score? ≥3.0 &
Delta
PE S&S Review
∆>0.5 SMA
with SupplierYES score

YES
<3.0

PE S&S Creates &

Improve YES Review Appr
<3.0 ment
Improvement Plan oved
Plan
Supplier ?

NO NO

Block for PO and/or Phase Out

14 days to supplier to
Archer computed the delta and sends Archer - notify
Archer - Notify Supplier SMA Self re- 30 days PE S&S reviews SMA self assessment when
notifications to supplier and PE S&S supplier Block for PO
for Self Assessment assessment in MS ∆ >0.75 (create field in Archer for PE S&S Approval)
manager or Phaseout
forms
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 5.4 Scoring Criteria and Output

• The SMA methodology uses a scored output between 0 and 5.

• The score applies to each evaluated element, subcategory and to the
overall assessment.
• The primary intent is to confirm that all suppliers have in place the controls
to meet Nokia minimum non-negotiable requirements.
• The method by which the assessment is completed explains and
documents any gaps the supplier may have therefore immediately
providing an improvement action plan based on the findings.

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 Supplier Maturity Assessment Output
Managing the Results
Definitions- Supplier Status Actions
Explanations HSE Perspective
Supplier has management Approved.
5 controls in place that PREFERRED Note as “PREFERRED”, Identify any areas
represent the best in class or where supplier can be "recognized".
best that Nokia are aware.
Supplier level or management

Approved 4-5 exceeds current Nokia minimum

expectations
RECOMMENDED
Approved.
Note supplier as "RECOMMENDED"

3 to Supplier meets Nokia expectations- Approved.

controls are in place against all non- ALLOWED This is Nokia minimum acceptable
<4
negotiable requirements position. Nokia supplier as "ALLOWDED"

2 to Supplier has basics in place but does not meet Pending on Supplier Decision
Not Approved
<3 Nokia minimum expectations (Improve, block for PO, Phase-out)

Pending on Supplier Decision

0 to <2 The supplier has nothing or very little in place Not Approved (Improve, block for PO, Phase-out)

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9.Supplier Decision - SMA scoring below 3

Supplier Decision is needed if supplier is scoring below 3, the options are:

• Improve – raising a 30-day mandatory improvement plan to improve the supplier.

• Block for PO for high-risk activities – No New Purchase Orders, for the ongoing
activities the scope of supplier activities will be limited to non-high activities
(retired status in Archer, after 6 months being block for PO).
• Phase Out - supplier is excluded from future work with Nokia and set inactive or
plugged for deletion (retired status in Archer) The decision must be agreed
between Procurement and CPO PE S&S and recorded in the respective systems
(SDM and Archer), project team must be informed.

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10. 30-Day Mandatory Improvement Plans

• A Mandatory 30-day Improvement Plan is needed for suppliers scoring below 3 that we
want to maintain active.
• This plan is to be agreed at time of assessment with actions/controls put in place to
close gaps (improve SMA score equal or above 3).
• If there is an improvement plan and supplier did not improve (score is still below 3.0)
after implementing and completing the 30 days mandatory improvement plan a
supplier decision should be taken either to phase out or blocked for PO.
• All mandatory improvement plans and supplier decision should be recorded in Archer.
• Evidence of the decision should be attached in Archer supplier profile
• Improvement Plans must have Plan Owner (the one that implements the actions) and
Plan Manager (the one that validate the actions)

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Area to review
A. Roles, Responsibilities and H&S Advice/ Support

SMA-1.1 What Management System and Structure is in place?

SMA-1.2 How does the supplier ensure that H&S is managed in their company and their work for Nokia

SMA-1.3 Assignment of H&S accountability/ responsibility and access to competent H&S resource?

B. Health and Safety Arrangements and Administration:. Roles, Responsibilities and H&S Advice/ Support

SMA-2.1 What standard of risk assessments and methods does the supplier have in place?

SMA-2.2 Does the supplier have an adequate H&S policy in place?

SMA-2.3 How does the supplier ensure legal compliance?

SMA-2.4 How comprehensive and transparent is the suppliers' approach to H&S training identification and delivery?

SMA-2.5 How does the supplier manage PPE?

SMA-2.6 What process does the supplier have in place to manage incidents?
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 C. Selection and Management of Contractors:

SMA-3.1 Is the capability of contractors checked prior to work starting?

SMA-3.2 Are H&S clauses included in contracts?

SMA-3.3 How is H&S performance managed on the project?

SMA-3.4 Is there a consequence management process in place?

SMA-3.5 How is the capability and compliance of sub contractors ensured on the project?

D. Key controls for working at height:

SMA-4.1 How does the supplier ensure that everyone is fit to work at height?

SMA-4.2 What arrangements does the supplier have in place to manage work at height?

SMA-4.3 How does the supplier manage training for work at height?

SMA-4.4 Is everyone involved in working at height

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 E. Key controls for driving and road risk:

SMA-5.1 Are vehicles used on the project fit for purpose and well maintained?

SMA-5.2 Are all drivers competent?

SMA-5.3 Is driver behavior monitored and managed?

SMA-5.4 Are restriction placed on journeys to ensure that risks are reduced to an acceptable level?

F. Key controls for electrical work:

SMA-6.1 Is everyone who works on electrical equipment appropriately Not Applicable trained?

SMA-6.2 Is work on electrical installations appropriately managed?

SMA-6.3 Does a process exist to ensure that electrical faults are reported Not Applicable and rectified?

SMA-6.4 Is everyone made award of the risks of working on or adjacent to Not Applicable electrical hazards?

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 G. Supervision, Monitoring and Audit:

SMA-7.1 Is all high risk work properly supervised?

SMA-7.2 Is there a structured program in place to monitor levels of compliance and behavior?

SMA-7.3 Do senior managers of the company regularly visit site to monitor how work is being completed?

SMA-7.4 Is there a structured audit program in place?

H. Environmental:

SMA-8.1 How are environmental aspects managed?

SMA-8.2 How does the supplier ensure legal compliance?

SMA-8.3 Does the supplier comply with regulatory and company waste management requirements?

SMA-8.4 How does the supplier ensure chemical and fuel management?

SMA-8.5 How are climate change/energy aspects managed?

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 I. Key controls for Rigging and Lifting:

SMA-9.1 What processes does the supplier have in place for managing heavy lifts (greater than 100kg)

SMA-9.2 What training do those executing heavy lifts have?

SMA-9.3 How does the supplier ensure that correct rigging and lifting equipment is in place for heavy lifts?

SMA-9.4 What does the supplier have in place to supervise heavy lifts?

J. STREET WORKS & UNDERGROUND ASSETS

SMA-10.1 How does the supplier manage everyone who works on street works appropriately trained?

SMA-10.2 Is everyone made aware of the risks of working on or adjacent Construction/Street Works/Civil works?

SMA-10.3 Does a process exist to ensure that faults are reported and rectified?

SMA-10.4 How does the supplier manage the level of supervision for Street works?

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 Health, Safety, Security and Environment supplier resources
Global HSE Requirements & Guidance
https://www.nokia.com/resources/health-safety/requirements-guidance/
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