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Module 3 Module 3 Q1 Requirements 1 Q1 Requirements

Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

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Page 1: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3

Module 3 Q1 Requirements

1

Q1 Requirements

Page 2: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

The Purpose of this module is to provide insight to

the Ford Q1 designation, including eligibility,

requirements and the endorsement process. In

addition, the presentation will explain the impact of

Supplier PPM and Delivery Performance on the

Q1 score.

2

Page 3: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

Define Q1 and its benefits

Summary of changes to 3rd Edition

Explain Q1 eligibility and requirements

Know what it takes to achieve Q1

Know what it takes to maintain Q1

Detail the process to obtain Q1

Understand how a supplier can lose Q1

Provide detailed explanation of the impact of PPM

on the Q1 score

3

Page 4: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

Set of quality and manufacturing disciplines for the

purpose of driving continuous improvement within

the Ford Supply Base

Joint effort between Ford Motor Company and its

Supplier Partners

Performance based award

4

Page 5: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

“Best in class” status among the world’s

automotive suppliers

Preferred Ford Supplier designation◦ New product development

◦ Sourcing

Self-Certifying PPAP privileges◦ Upon Supplier Technical Assistant’s (STA) approval

Eligible for the World Excellence Award

Publicity and advertising privileges

5

Page 6: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

1. Q1 Scoring and Performance Categories

The Q1 scoring method and metric grouping have been revised.Q1 will now be scored

from 0 to 100 Q1 points. Sites start with 0 points and earn points in 4 Performance

Categories. A site must maintain a total score of 80 Q1 points and maintain / attain

certain Metric scores to remain in good standing. Suppliers will no longer receive

negative points or bonus points applied to a base score.

2. Q1 Status Stratification

In order to reward higher performing supplier sites, Q1 Status will now be stratified per

demonstrated performance over a 6 month period into 4 levels:

- Q1 Gold (greater than 95 Q1 points)

- Q1 Silver (91 to 95 Q1 points)

- Q1 (80 to 90 Q1 points)

- Q1 sites recommended for revocation if overall Q1 score less than 80 Q1 points or

zero Metric score for PPM, Q1MSA, Stop Ship, FSA, Certifications or delivery

3. New Q1 Metrics for Q13rd Edition

QR Rate for both production and service, APQP Launch Performance, and Warranty

R/1000 Performance are new Metrics in Q1 3rd Edition.

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Page 7: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

4. Q1 Metric Threshold Limits

Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

3rd Edition limits the PPM scoring for Q1 attainment to the base PPM score for those

commodities used for Q1. Q1 3rd Edition also limits the QR Rate scoring for suppliers

with low receipts to prevent excessively low QR Rate scores for low volume suppliers

and QR incidents.

5. "Violation Of Trust" Removal

The Violation of Trust has been eliminated from Q1 scoring and revocation governance.

Q1 Manufacturing Site Assessment is now used to identify and address this type of

issue.

6. Streamlined Endorsements

- Plant endorsement removed

- MP&L Mandatory Document Pre-Screening

- MP&L Lead Region Endorsement

- FCSD Lead Region Endorsement

- Additional details can be found in the Q1 3rd Edition Manual in

Appendix F

7

Page 8: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

Any external supplier manufacturing facility which

currently supplies production or service product to Ford

and its Joint Ventures is eligible for Q1 consideration.

This includes Packager and Bulk suppliers.

Subcontractors are not eligible for Q1 status.

Q1 means that the supplier facility achieves excellence

in these key areas: Quality Performance, Capable

Systems, Warranty Performance, and Delivery

Performance.

8

Page 9: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

9

Q1 3rd Edition includes 4 Categories with 12 metrics

Page 10: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

I. Quality Performance

Q1 uses five key Metrics in determining a supplier’s Quality Performance Category score:

Production and Service PPM: Does a supplier consistently deliver high quality products when compared against the industry standards?

Production and Service QR Rate: Does the supplier provide high quality parts to Ford and JV plants and service depots, minimizing disruptions?

Stop Shipments: Is vehicle rework, modification or re-inspection necessary due to poor product availability or supplier quality?

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Page 11: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

II. Capable Systems

Q1 uses 3 key Metrics to define the capable systems

Category:

Industry Standards:

◦ IATF 16949 or ISO/TS 16949 quality management

◦ ISO14001 environmental standard

◦ MMOG / LE, achieving level A.

Q1 Manufacturing Site Assessment (Q1 MSA)

APQP Launch Performance

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Page 12: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

III. Warranty Performance

Field Service Actions:

◦ Has Ford had to intervene for the end customer because of a supplier failure?

Warranty R/1000 Performance (Production only): ◦ Does the supplier show reduction in repairs / 1000 and

continuously

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Page 13: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

IV. Delivery Performance

Do products arrive on time, at the correct location,

in the proper quantity and with the correct

information?

Delivery rating maintained at 81 points or higher

for all ship points associated with the

manufacturing location (reported in SUPER-G)

13

Page 14: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

Q1 Category Requirement Threshold to achieve Q1

Quality Performance Commodity PPM for both Production and

Service

6 month Commodity PPM less

than 1.5x Industry Commodity PPM (that is

used for Q1) for both Production and Service

QR Rate (6 months) For both Production and Service, QR Rate

Metric score ≥ 8points.

Stop Ship None in most recent 6 months with any supplier

responsibility (Stop Shipment Metric score = 20

points)

Capable Systems Q1 Manufacturing Site Assessment (Q1

MSA)

Acceptable current Q1 Manufacturing Site

Assessment or acceptable Corrective Action

Plan. (Q1MSA Metric score = 15 points)

APQP Launch Performance “Acceptable” or better APQP Launch

Performance Rating (Metric score ≥3

points) or not applicable

Industry Standards (IATF 16949 or ISO/TS

16949, ISO 14001, MMOG/LE)

Certifications / assessment requirements met

and not expired, also MMOG/LE level

A (Industry Standards Metric score = 10 points)

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Page 15: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

Q1 Category Requirement Threshold to achieve Q1

Warranty Performance Field Service Actions None in most recent 6 months with any supplier

responsibility

(FSA Metric score = 10 points)

Warranty R/1000 (production only) Warranty R/1000 Performance Metric shows

improving trends (Warranty R/1000

Performance Metric score ≥3 points)

Delivery Performance For both Production and Service all

regions which report delivery ratings to

SIM via MP&L’s “SUPER G” system

For every delivery rating, (except those identified

in SIM as “not considered for Q1”) the 6 month

weighted average and the 3 most recent

available monthly ratings from the last 7 calendar

months (may include the immature month) must

all be 81 points or higher. The site must have at

least 1 delivery rating 6 or more months old.

Active Site Status Receipts Receipts are required for at least 3 of the most

recent available 6 mature months,

and delivery ratings exist for at least 3 of the

most recent available 7 calendar months

for the supplier to be eligible for Q1.

Overall Q1 score Must be 80 points or higher

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Page 16: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

Q1 Category Requirement Threshold to achieve Q1

Quality Performance Commodity PPM for both Production and Service 6 month worst commodity PPM less than 2x Industry

Commodity PPM and no more than 2 out of 6 individual months at or above 2x Individual month

commodity PPM (that is used for Q1) for bothProduction and Service Commodity PPM Metric score

>0 points) Q1 Action Recommended

QR Rate (6 months) For both Production and Service, any QR Rate Metric

score >0 points.

Stop Ship Not more than one in the most recent 6 months with

any supplier responsibility(Stop Shipment Metric score > 0 points) Q1 Action

Recommended

Capable Systems Q1 Manufacturing Site Assessment (Q1 MSA) Q1MSA Metric score ≥ 0 points [no delinquent second

action or ineffective corrective action plan (second action) status assigned by the STA site engineer] Q1

Action Recommended

APQP Launch Performance For production and service, Q1 maintained with any

Metric score. Gold and Silver levels not permitted with 0 score.

Industry Standards (IATF 16949 or ISO/TS

16949, ISO 14001, MMOG/LE)

Certifications / assessment requirements met and not

expired > 31 days for IATF or ISO/TS 16949 and ISO14001 (Industry Standards Metric score >0 points)

Q1 Action Recommended

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Page 17: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

Q1 Category Requirement Threshold to achieve Q1

Warranty Performance Field Service Actions None in most recent 6 months with any supplier

responsibility (FSA Metric score = 10 points) Q1

Action Recommended

Warranty R/1000 Q1 maintained with any Metric score > 2 points

or no warranty reported

Delivery Performance For both Production and Service all

regions which report delivery ratings to

SIM via MP&L’s “SUPER G” system

Delivery Performance Metric score > 0 points

[Either 6 month weighted average, or

any of the 3 most recent available monthly

ratings from the last 7 calendar months

(including the immature month) 81 points

or higher] Q1 Action Recommended

17

Active Site Status Receipts Supplier Sites with no receipts for the last 13

consecutive calendar months are subject to

inactivation and loss of Q1status unless future

business is confirmed by the buyer.

Overall Q1 score Must be 80 points or higher AND have no 0 point

Metric scores as noted above. Q1 Action

Recommended

Page 18: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

18

Once the Supplier Site has satisfied Q1 requirements in Quality Performance, Capable Systems, Warranty Performance, and Delivery Performance the Supplier Site is required to obtain customer endorsements from:

◦ MP&L (Material Planning & Logistics),

◦ FCSD (Ford Customer Service Department) for service parts

◦ Supplier Technical Assistance (STA).

Valid for 6 months

◦ If Q1 isn’t achieved within 6 months of the customer endorsement request, it must be requested again

Form PP-S-F047 Request for Customer Endorsement

◦ Provided by STA

Customer Endorsement

Page 19: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

19

Supplier sites that are only active for service are

considered Service Unique.

Endorsements obtained from FCSD will cover all

regions that the supplier site ships to

Submit Form PP-S-F047. Must be submitted to

the Quality Coordinator for the supplier’s region.

Contact your FCSD STA prior to submission and

if you have any questions.

Service Unique Sites Q1 Endorsement

Module 3 Q1 Requirements

Page 20: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

20

How can I lose Q1? 6 month commodity PPM performance

◦ Worse than -100% with “0” point

criteria satisfied – 3 or more months

at the “worse than -100%” level.

QR Rate – 3 month vs. 6 month

◦ An Unacceptable score result in a 0

metric score

Stop Ship

◦ Two or more stops ships in most

recent 6 months

Q1 MSA

◦ Site assessment delinquent twice

◦ Corrective Action Plan ineffective

twice

Industry Standards

◦ MMOG/LE missing/expired or not

at level A

◦ ISO 14001 Expired over 31 days

◦ IATF 16949 or ISO/TS 16949

Expired over 31 days

Field Service Actions (FSA)

◦ Any Field Service Action within 6

most recent calendar months

Delivery – based off the lead region

◦ 6 month weighted average less

than 81 and ALL of the 3 most

recent available monthly ratings

less than 81, including the

immature month

Page 21: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

21

Commodity PPM for Production

and Service

A supplier gains Q1 points by

outperforming the industry

commodity PPM (rated on the

percentage above or below the

industry commodity PPM). If a site

provides multiple commodities, it will

only receive points for the worst

performing commodity for production

and for service, respectively. See the

Table on the right for the

corresponding Metric point criteria.

IMPACT OF PPM ON Q1 SCORE

6 Month Commodity PPM Performance Table

Performance vs. Q1 IndustryCommodity PPM

(Performance vs. Q1 Level in SIM)

Metric points(Towards Q1 score in SIM)

100% 10 points

75% to 99.99% 9 points

25% to 74.99% 8 points

0 to 24.99% 7 points

-.01% to -24.99% 6 points

-25% to -49.99% 5 points

-50% to -74.99% 4 points

-75% to -99.99% 3 points

Worse than -100% 2 points

Worse than -100% with “0 point” Criteria Satisfied *(see next page)

0 points

Page 22: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

22

Commodity PPM for Production and Service

IMPACT OF PPM ON Q1 SCORE

6 Month Commodity PPM Performance Table continued. Worse than -100% with “0 point” Criteria Satisfied

The “0 point” criteria are based on the 6 month Commodity PPM and the number ofindividual months out of the 6 mature months in which the commodity performanceexceeds the Q1 industry commodity level as defined below.

Currently the “0 point” Criteria are:For Production and Service: the worst 6 month Commodity PPM for the site “used for Q1”> 2x Q1 Industry Commodity PPM and 3 or more months at the “Worse than -100%” level(1 point) results in a score of 0.The number of months at the “Worse than -100%” level (1 point) is displayed in SIM withthe note “2X Industry Threshold”.

Note that the number of months and multiple of the Q1 industry commodity level can bealtered for all production suppliers and/or all service suppliers based on performance.Notice will be provided prior to implementing any such change.

Page 23: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

23

IMPACT OF PPM ON Q1 SCOREIndividual Commodity Q1 Phase-In Metrics

Phase In Metric (Completed per

Individual

Commodity)

Effective Range (Same

for Service

and Production)

Q1 Metric score

Limit (Low est

score Allow ed)

Commodity PPM

115.1 to 120 2

110.1 to 115 3

105.1 to 110 4

100.1 to 105 5

0 to 100 7

Percentage of Site

Volume

12.1 to 15 3

10.1 to 12 4

8.1 to 10 4

6.1 to 8 5

0 to 6 Not Used for Q1

Total Pieces

Rejected

6 to 7 4

5 to 5 5

4 to 4 5

0 to 3 7

Site Overall PPM

115.1 to 120 2

110.1 to 115 3

105.1 to 110 4

110.1 to 105 5

0 to 100 7

Individual Commodity Q1

Phase-In Metrics (Lowest

score Allowed Limits):

A Limit strategy has been developed to

protect “Low Volume” suppliers from

excessively low Q1 PPM scoring.

These Limits are applied to the base

Q1 score to limit / cap scoring for lower

levels of PPM, percent volume, and

number of rejects. This results in an

Applied PPM score for each

Commodity. The explanation of these

limits are in the Individual Commodity

Q1 Phase-In Metrics table to the right.

Page 24: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

24

QR Rate for Production and Service

QR (Quality Reject) Rate is a normalized measure of unique QR incidents per 100 opportunities for both Production and Service. Both Production and Service QR Rate Metrics contribute 10 Metric points to the total Quality Performance Q1 Category score. Q1

QR Rate Metric score is determined by the QR Rate per 100 Opportunities Value, and the 3 Month vs. 6 Month Trend

Limit Factor: The QR Rate Metric score Limits, will limit the QR Rate Metric score if the effective range applies and the associated QR Rate Metric score Limit is higher than the base QR Rate score calculated

IMPACT OF PPM ON Q1 SCORE

QR Rate Scoring Thresholds

QR Rate Status

(6 Month)

QR Rate Trend (3 Month

vs. 6 Month)

Metric Score

Outstanding <3

(Raw Materials

<1.5)

N/A 10

Trending 3 < Rate < 10

(Raw Materials

1.5 <

Rate < 7)

Improving 8

Level 6

Degrading 4

Unacceptable >10

(Raw Materials

>7)

N/A 0

Low Volume Limits on QR Rate

QR Rate Phase-In

Metric

Effective Range (Same

for Service and

Production)

QR Rate Metric score

Limits (Low est score

Allow ed)

Number of QR

Incidents

1 6

2 4

≥3 0

Active Months (Months

w ith Receipts)

1 4

2 4

≥3 0

Page 25: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

Module 3 Q1 Requirements

25

Impact of Delivery Rating On Q1 Score

Super G 6 Month Weighted Average Metric Points

100 10 points

≥97 to 99 8 points

≥81 to 96 6 points

Less than 81(BUT ANY of 3 the most recent available monthly

ratings ≥81, including the immature month)6 points

Less than 81(AND ALL of the 3 the most recent available monthly

ratings <81, including the immature month)0 points

Determining Worst Ship pointFor all considered ship points, the Supplier Site receives “0 point” Metric score if the followingoccurs:Delivery Rating falls below 81 points for:• The weighted six-month average AND• The last 3 available ratings from the past 7 complete months

• This includes the immature month rating if one is available• These ratings do not need to be in consecutive calendar months• Ship sites with ≤ 2 ratings in the past 7 months are not considered

Page 26: Q1 Requirements - User 3 Q1 Requirements ... APQP Launch Performance, ... Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1

26

• More information is

available on the Ford Supplier Portal –

Production and Service Q1

• The link is available through Covisint

(https://web.qpr.ford.com/sta/Q1.html)

Module 3 Q1 Requirements

For further questions, please contact your Production or

FCSD Service STA.