Working Together
PC REFERRED
S
UPPLIER
E R T I F I C A T I O N
SUPPLIER MANAGEMENT VISION
Suppliers, in long-term p
Suppliers in long-term relationships with Boeing
satisfying our
are satisfying our customers with top-quality,
technically excellent, affordable products,
delivered on time.
WORKING
E
veryone knows the importance of having co-workers or associates
with whom you can work closely, tackle challenges, and share a commitment
to a vision.
At Boeing, our suppliers are a valued part of our extended enterprise. Suppliers
account for more than half the cost of our products. They touch every function and
every program at Boeing. How well our suppliers do their jobs directly affects how
William L. Stowers
well we do our job.
That’s why we are committed to developing long-lasting, mutually beneficial relationships
throughout our extended family of suppliers. One way we build such relationships is through our enhanced
Preferred Supplier Certification (PSC) process — a tool to identify and recognize high-performing suppliers
strategically important to Boeing. Considered a best-in-industry practice, PSC has been widely copied
and benchmarked.
Now we are taking PSC to a new level. Look through these pages, and you will see how Boeing is using
PSC to support the development of lean processes that are crucial to our vision of providing high-quality,
affordable products to our customers.
Together with our extended family of suppliers, we are one team working for global aerospace
leadership. We are working together for success!
TOGETHER
William L. Stowers
Supplier Management Process Council
1
PC REFERRED
S
UPPLIER
E R T I F I C A T I O N
Preferred Supplier Certification (PSC) involves a series of processes
Boeing Preferred
Supplier Certification
Process
that touch a supplier’s entire business operation. Boeing invites selected
suppliers to participate in the PSC process. PSC identifies and honors
suppliers that provide Boeing with the highest-quality products and
services, delivered on time and at best value.
PSC focuses on improved relationships with affordable, high-performing,
Establish
Expectations
2
strategically important suppliers. It also promotes process and
Boeing
Customers
performance improvements throughout the supply chain.
Meet Boeing
Performance
Criteria
Implement
Advanced Quality
System
Meet
On-Site Business
Assessment
Expectations
Continue
Improvement
Suppliers
Establish Criteria for
Preferred Supplier
Certification
(PSC)
Award Preferred
Supplier
Certification
Measure Supplier
Performance and
Processes
Upgrade When
Higher Criteria
Are Met
Boeing
WORKING
WHAT IS IT? Preferred Supplier Certification Process
Supplier certification includes evaluation of suppliers
in three areas:
• Advanced Quality System
• Continuous Improvement
System Development
d
d
e
e
c
nc
an
a
v
y
v
• Performance Measures
d
Ad ua
lliitty
A
a
• Products and Processes
m
Qu te
Q
em
t
s
s
• Improvement Actions/Projects Sy
Sy
• Management Review
• Variation Control Methods
• Process Capability/Optimization
• Design Variation Management
r
li e ce
p
Sup rma n
rfo
e
P
• Quality Acceptance
• On-Time Delivery
• Affordability
• Customer Satisfaction
• Business Processes
• Demonstrated Performance
The certification process identifies suppliers who
are committed to continuous improvement in both
processes and products. Supplier certification is based
er
i
l
pp es s
u
S sin e s
s
Bu ce s
Pro
on the achievement of specific standards of excellence.
• Leadership
• Quality
• Technology
• Cost
• Product Delivery
• Support
3
LEAN
SUPPLIERS
TOGETHER
AQS EVALUATION MATRIX
Evaluation
Section
4
Raw score
Section Weights
Without
Design
With
Design
Continous Improvement
System Development
5
4
Performance Measures
6
5
Analysis of Products
and Processes
6
5
Implementation of
Improvement Actions/Projects
7
7
Management Review
6
5
“Plsnning, selection, and maintenance”,
and SPC)
5
4
Process Capability and
Optimization
5
4
Weighted
Score
BUSINESS
PROCESS ASSESSMEN
Leadership
Quality
Product
Delivery
Cost
Techno
Organization
Quality
Management
Planning,
Scheduling,
Control &
Supplier
Integration
Cost Estimating,
Proposal
Preparation and
Reporting
Prod
Develop
Company
Integration
Quality
Assurance
Quality
Control
Production
Organization &
Operations
Valuation of
Inventory and
Control of Cost
Prod
Desi
Defini
Desig
Produc
Transi
Material &
Inventory
Control
Systems
Variation Control Method (Both
Variation Management in Design
6
TOTAL
Gold
185 Points Minimum
Advanced Quality System Evaluation
Implementing an Advanced Quality System
Silver
(AQS) is a key to quality because it helps a
120 Points Minimum
supplier to reduce variability and to promote
Bronze
productivity. The certification process
Basic Acceptance
evaluates the supplier’s AQS techniques
for effectiveness in limiting variability and in improving the quality and productivity
of manufacturing and administrative processes.
To become certified in AQS, a supplier must attain basic acceptance in the
categories listed above.
Business Process Assessment
Boeing assesses a supplier’s business processes through an on-site vis
supplier personnel. A supplier is evaluated on how well it functions in six
quality, product delivery, cost, technology, and support.
During the on-site visit, Boeing and the supplier work as a team to cla
document strengths, and to identify areas for process improvements, esp
assistance is needed to enhance lean techniques and applications.
When the assessment is completed, the supplier submits a continuous
ensure its ongoing growth as a best-value supplier.
WORKING
NT
ogy
ent
n
Support
SUPPLIER PERFORMANCE
Support
Management
& Planning
Performance
In-Service
Support
Delivery
o
on
n
On-Time
(%)
and interviews with
areas: leadership,
y expectations, to
cially places where
mprovement plan to
(1)
Period
(Months)
Quality
(2)
Acceptance Period
(Months)
(%)
Gold
100
12
Silver
97
12
99.5
Bronze
93
12
99
100
Affordability
Cost Trends, Cost-Reduction Efforts,
Lean Practices
Customer Satisfaction
Management, Schedule, Quality,
Technical, Finance
12
4.0 or greater
4.4 or greater
12
3.4 to 3.9
3.8 to 4.3
2.8 to 3.3
2.8 to 3.7
12
Certification Standards
Boeing continuously measures supplier performance in four areas:
• Delivery
• Quality
• Affordability
• Customer Satisfaction
Boeing plans to deliver online performance reports quarterly, after compiling data from across Boeing. Besides facilitating performance improvement,
evaluation reports are a tool for ongoing communication and feedback between suppliers and Boeing.
TOGETHER
Certified Suppliers must achieve and maintain the specific performance standards described in the accompanying chart.
On-time delivery window to fulfill contractual commitment is 10 days early/zero days late or as otherwise specified in the PO.
(2) Complexity factors may apply to specific items.
(1)
5
POTENTIAL BENEFITS FOR
CERTIFIED SUPPLIERS
Suppliers that attain Certified Supplier status may gain more
than a Gold, Silver or Bronze designation. Plans call for a Certified
Supplier to receive a variety of potential benefits, including
increased opportunities for business with Boeing and with other
suppliers as a result of a supplier’s certification achievement.
Preferred Supplier Certification can:
• Improve supplier competitiveness
• Increase bidder/source selection preference
• Enhance relationship with Boeing and reputation
within industry
6
• Reduce potential for Boeing inspections
• Support supplier lean initiatives
• Provide access to Boeing resources and training
Supplier Base Training
To help build strong relationships with our suppliers, Boeing
offers assistance to suppliers who are committed to Preferred
WORKING
Supplier Certification. Boeing provides training for
Certified Suppliers through such courses as:
• Lean Enterprise Overview
Achieving Certified Supplier status means recognition from Boeing and the aerospace industry.
The Certified Supplier designation identifies a company as a best-value
high performer that is part of the Boeing extended enterprise team of
global aerospace leadership.
• Statistical Process Control
(SPC)
SUMMARY OF
STANDARDS FOR CERTIFICATION
• Preferred Supplier
Certification
• Accelerated Improvement
Workshops
• Value Stream Mapping
Process
Certification
Level
• Stepup Reduction/Controls
Total
Business
Assessment
Certification
Level
Advanced
Quality
System
Performance Expectations
Affordability (3)
• Lean Workshops
4.5 - 5.0
Min. 4.0
Gold
Courses are usually offered
at Boeing facilities. Classes also
100
12
100
12
Silver
3.5 - 4.4
Min. 3.0
Assessment
Score > 120
97
12
99.5
12
Silver
Bronze
supplier will be asked to pay the
2.5 - 3.4
Min. 2.0
4.0 or greater
4.4 or greater
7
3.2 to 3.99
Gold
can be conducted at a supplier’s
facility. In such cases, the
Assessment
Score > 185
(1)
Customer Satisfaction
Improvement,
Quality (2) Cost Trends, CostAffordability
Lean Applications
Cost Trends, Cost-Reduction Efforts, Management, Schedule, Quality,
Period Delivery
Acceptance Period Quality
Lean Practices
Technical, Finance
(Months)
(Months)
(%)
4.0 or Greater
Delivery
On-Time
(%)
Effective 1/1/2004
3.4 to 3.9
3.8 to 4.3
2.8 to 3.19
Basic
Acceptance
93
12
99
12
2.8 to 3.3
2.8 to 3.7
instructor’s per diem allowance
(1)
On-time delivery window to fulfill contractual commitment is 10 days early/zero days late or as otherwise specified in the PO.
and travel expenses.
(2)
Complexity factors may apply to specific items.
For more information about course locations and schedules, call (314) 234-0143.
TOGETHER
LOOKING TO
THE FUTURE
As the world’s leading aerospace company, Boeing requires a world-class supply base.
Suppliers are a valuable and integral part of the Boeing extended enterprise. Together, we are meeting
the challenges of global aerospace leadership.
Meeting those challenges demands a lean enterprise — throughout Boeing and throughout our extended
supplier family. A key to achieving that lean extended enterprise is to build strong supplier
relationships based on open, honest communication, mutual respect, and shared goals that will allow us to
move Boeing and our extended supplier family to the next level of performance.
Additional efforts to help us achieve those strong supplier relationships include:
8
• Holding supplier focus groups to promote communication and feedback.
• Involving suppliers early in new business acquisitions.
• Assisting suppliers in assessing their processes to achieve leanness.
• Using Boeing Strategic Sourcing Teams to improve individual supplier relationships.
WORKING
Boeing sees working together with our
suppliers as a relationship that is
good for our suppliers, good for
Boeing, and good for our
customers.
ONE TEAM, ONE GLOBAL AEROSPACE LEADER • ONE TEAM, ONE G
ONE TEAM, ONE GLOBAL AEROSPACE LEADER • ONE TEAM
ONE TEAM, ONE GLOBAL AEROSPACE LEADER • ONE
ONE TEAM, ONE GLOBAL AEROSPACE LEADER • ONE TEAM, ONE G
ONE TEAM, ONE GLOBAL AEROSPACE LEADER • ONE TEAM, ON
TOGETHER
ONE TEAM, ONE GLOBAL AEROSPACE LEADER • ONE TEAM
For more information on the Boeling Preferred Supplier Certification process,contact
Terrence Majerski, Supplier Management and Procuremant, 714-896-4281 or at [email protected]
GD98-0262/Zig