Raytheon Supplier Rating System (SRS)
Overview and Ratings Guide
Dated 01/17/2018
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Raytheon Supplier Rating System
2Copyright, 2003 - 2018, Raytheon Company. All rights reserved.
• This guide provides an overview of the Raytheon Supplier Rating System(SRS). It is designed to describe the system, it’s elements, and howperformance ratings are determined.
• All ratings are based on a rolling 12 month window of data. Ratings arebased on data provided every two weeks by individual Raytheon businessunits. Reports are available on approximately the beginning and middle ofeach month.
• A key feature of SRS is the Supplier Performance Relationship Report(SPRR). The SPRR represents the Quality and Delivery performance ofRaytheon suppliers. Reports are posted internally at Raytheon and on theexternal SRS website for access by suppliers. Suppliers only have accessto their reports and data regarding their company’s performance.
• The rating algorithms are the same across all Raytheon business.
• On Time Delivery is based on Raytheon business days.
• Internally, if you require assistance beyond this document, please contactyour Raytheon SRS Business POC. If suppliers need assistance, contactyour cognizant Raytheon buyer.
• What is the Supplier Rating System (SRS)?
3Copyright, 2003 - 2018, Raytheon Company. All rights reserved.
SRS is Raytheon’s company wide system integrating procurement, receiving, quality,inspection and qualitative information across Raytheon.
SRS provides Raytheon with a consistent method of rating suppliers to determinesupplier performance and support the supplier selection process.
SRS provides Raytheon and suppliers visibility into critical performance data andpresents one Raytheon face to our supplier base.
• Why is SRS Important? SRS provides a consistent method of rating suppliers and allows Raytheon to present
one face to our suppliers. Sharing SRS performance ratings with our suppliers opens lines of communication,
leading to improved relationships and healthy competitive supplier behavior. Use of SRS supports the supplier selection process, which can reduce program risks
and operating costs.
Raytheon Supplier Rating System
Supplier Rating Elements
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• There are two types of ratings a supplier may receive as part of the Supplier Rating System (SRS):
Rating Type Applicability Criteria Weight
Quantitative Rating SPRR(Supplier Performance RelationshipReport)
All suppliers Quality 60%
Delivery 40%
Qualitative Rating QDI(Qualitative Data Input)
Completed AsRequired by each
Business or Program
Price/Cost Weightings Assigned by
Lead Evaluator with Key Criteria Weightings
Totaling 100%
Schedule/Delivery
Technical
Quality/Mission Assurance
Business/Management
Qualitative Data Input (QDI) Ratings
Roadmap to Excellence• Stratifying the Supply Base based on supplier performance:
Supplier Performance Relationship Report (SPRR) Ratings
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Quantitative Rating Element Details
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Supplier Performance Relationship Report (SPRR)
Quantitative Rating - SPRR
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• Ratings Details Two years worth of historical data is loaded twice monthly Reports are available in 1 month, 3 month, and 12 month views, utilizing a 12 month
rolling data source Although all deliveries and quality events are listed, only those POs with direct,
receivable, production and engineering procurements are rated. These are indicated with an “E/L” rating inclusion designation.
• The following reports are available Supplier Ratings For All Businesses: Global - All Supplier Locations For All Raytheon Business Units Individual - Single Supplier Location for All Raytheon Business Units
Supplier Ratings By Business: IDS - Integrated Defense Systems IIS - Intelligence, Information and Services MS - Missile Systems SAS - Space and Airborne Systems
Quantitative Criteria and Weights
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For additional information on the SRS algorithm and the ability to calculate ratings for different scenarios, refer to SRS Rating calculator found on the SPRR landing page
• Overall Quantitative Ratings include Quality and Delivery Performanceweighted as follows:
Criteria Weight Sub Criteria Sub Criteria Weight
Source, Incoming and Floor Failures - PPM 54.5%Incoming - Lot Acceptance Rate % 27.3%Supplier Corrective Action Request -SCAR 18.2%
Sub Criteria Total 100%
On-Time Delivery 100%Sub Criteria Total 100%
100%
Major Criteria
Quality
Delivery
Qua
ntita
tive
Ratin
gs
Total Quantitative Rating
60%
40%
Quality Rating
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• The Quality Rating is based on the weighted average of 3 components:
1. Parts Per Million (PPM) Score2. Lot Acceptance Rate (LAR)3. Supplier Corrective Action Requests (SCAR) Impact
𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐 𝐑𝐑𝐐𝐐𝐐𝐐𝐐𝐐𝐑𝐑𝐑𝐑 = 𝟓𝟓𝟓𝟓.𝟓𝟓% ∗ 𝐏𝐏𝐏𝐏𝐏𝐏 𝐒𝐒𝐒𝐒𝐒𝐒𝐒𝐒𝐒𝐒 + 𝟐𝟐𝟐𝟐.𝟑𝟑% ∗ 𝐋𝐋𝐋𝐋𝐑𝐑 + (𝟏𝟏𝟏𝟏.𝟐𝟐% − 𝟎𝟎.𝟎𝟎𝟏𝟏 ∗ 𝐒𝐒𝐒𝐒𝐋𝐋𝐑𝐑 𝐈𝐈𝐈𝐈𝐈𝐈𝐐𝐐𝐒𝐒𝐐𝐐)
9
Quality Rating
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• The PPM Score
The PPM score is based on three linear equations and the calculated PPM value.
10
Quality Rating
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• The PPM Score - continued
11
Where to find this information in the SPRR
Quality Rating
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• The Lot Acceptance Rate (LAR)
12
Quality Rating
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• The Lot Acceptance Rate (LAR) - continued
13
Where to find this information in the SPRR
Quality Rating
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• The SCAR Impact
14
Quality Rating
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• The SCAR Impact - continued
15
Where to find this information in the SPRR
The “SCAR Detail” report indicates how many SCARs are impactingthe rating and what the impact is for each.
Delivery Rating
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• The SRS Delivery rating is based on 3 components:
1. Lots Received on Time2. Lots Due3. Lots Past Due
16
Delivery Rating
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• Lots Received on Time
17
Delivery Rating
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• Lots Received on Time - continued
18
Where to find this information in the SPRR
The “Receipt Detail” report indicates lots delivered on timewithin the 1, 3 and 12 month measurement windows.
Delivery Rating
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• Lots Due
19
Delivery Rating
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• Lots Due - continued
20
Where to find this information in the SPRR
The “Receipt Detail” report indicates lots due that were received, the“PO Details” report indicates lots due not yet received.
Delivery Rating
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• Lots Past Due
21
Delivery Rating
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• Lots Past Due - continued
22
Where to find this information in the SPRR
The “PO Details” report indicates lots due that have not yet beenreceived which are prior to the measurement window (Past Due).
Supplier PerformanceRelationship Reports (SPRR)• Suppliers must log on to Exostar to access the reports (contact your
Raytheon Buyer for more information regarding access). RTN users can access SPRR reports from the SRS home page.
• For more information on system access or navigation, refer to the “SPRRNavigation Guide” link on the SPRR home page.
• The SPRR is the most convenient way for a supplier to determine how they are performing for Raytheon.
Copyright, 2003 - 2018, Raytheon Company. All rights reserved.23
Qualitative Rating Element Details
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Qualitative Data Input (QDI)
24
Qualitative Ratings
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• Suppliers may be qualitatively assessed in 5 Key Rating Criteria: Price/Cost Schedule/Delivery Technical Quality/Mission Assurance Business/Management
• Resulting qualitative ratings may be Unsatisfactory (Red), Marginal(Yellow), Satisfactory (Green), Very Good (Purple), or Exceptional (Blue) for Each Key Rating Criteria as Shown in the Final Report Qualitative scores are not factored into the quantitative SRS rating QDI is used for all suppliers and the applicable rating criteria is selected from a listing
of 40 sub-criteria, embedded in the 5 key rating criteria
• The Sub-Criteria within the Key Rating Criteria must total to 100% and all of the Key Rating Criteria must total to 100%
• Qualitative Ratings are assessed through the QDI Tool within SRS25
Glossary
• LAR = Lot Acceptance Rate• OTD = On Time Delivery• PPM = Parts Per Million• SCAR = Supplier Corrective Action Request• SPRR = Supplier Performance Relationship Report• SRS = Supplier Rating System
Copyright, 2003 - 2018, Raytheon Company. All rights reserved.26